Generation Z is the generation most likely to seek out personal advice when it comes to buying a financial product, Target Group has found.
Some three quarters (73%) of generation Z, those born between 1995 and 2010, go to parents first for advice on financial products, significantly higher than the proportion of millennials (42%).
Ian Larkin, chief executive of Target Group, said: “The next generation of customers is beginning to reach maturity, displaying significantly different behaviours to generations that have come before them.
“Generation Z consumers are financially savvy, digitally adept, and place high expectations upon their financial services firms. Early on in their financial journey, they are looking to providers not just for top-notch service and easy access, but for advice and support.
“While other generations have a clear idea of what is important to them and how they want to access services, many of the responses from generation Z are far more varied, suggesting they are still feeling their way in the world of finance and working out their priorities.
“As such it is crucial for providers to continue to develop and offer the multi-channel, hybrid approach used by millennials, but adapt it to the need for advice from a less financially experienced audience.
“Generation Z may not yet prioritise the best interest rates and best value products to the same extent as their predecessors, but they do know what they want.
“Data security and trust are crucial for this generation, and the providers that are going to win in the future are those that take this point seriously and deliver substantial solutions that meet these expectations.”
Furthermore, some 43% of generation Z ask their friends for advice, despite them likely being equally inexperienced in the world of financial products.
Generation Z is the least likely to use a comparison website when it comes to finding help choosing financial products and services – just 17% use these tools, compared to 34% of millennials and 56% of baby boomers.
This group is also the least likely to use conventional websites for research (44%), far outstripped by the 72% of baby boomers who use websites, and 60% of millennials.
In addition, nearly two thirds (63%) of generation Z saying they would feel comfortable managing their finances via a virtual assistant for managing their current account, setting up a new insurance policy, carrying out administration on their loan or mortgage, and handling their savings account.