Two-thirds ‘do not think financial companies have a good understanding of what is important to people like me or are actively working to educate Australians on financial matters’. 

Sydney, 17 February 2025: Financial stress, fuelled by the rising cost of living and complex financial landscape, is chipping away at the self-esteem of Australians, with a newly released study revealing that two-thirds value financial services brands that help them take control of their finances (64 per cent). Kantar Australia’s latest Finding Financial Freedom state-of-the nation report reveals that over one-third (35 per cent) of Australians say their financial situation has worsened in the last year, and they feel that there is little hope for a brighter financial future. Feeling it worse are females, Millennials, and those with kids and/or a lower self-rated financial knowledge.  

“This is not just a social issue – it is a wake-up call for financial marketers who are at risk of losing customers to unregulated sources of financial guidance. The need to close the gap is now critical,” says Kantar Australia Head of Qualitative Carolyn Reid. 

“With many recent studies revealing that financial literacy levels are declining in Australia, and with women and girls still disproportionately affected, communicating complex financial concepts to a broad audience with varying levels of financial literacy is hard. In fact, more than half (52 per cent) still feel that financial services brands do not make information easy to understand,” adds Reid. 

“The report reveals 66 per cent ‘do not think financial companies have a good understanding of what is important to people like me’ and ‘do not think they are actively working to educate Australians on financial matters’. This is despite three in five Australians saying that they ‘would like to be more confident in their understanding of financial matters’ (59 per cent).”

“A fundamental part of financial well-being is financial resilience with seven in 10 Australians not feeling optimistic about their financial future (69 per cent). This is slightly lower than 2023 (72 per cent), but still a staggering majority, which is a reality that we must wake up to as we emerge to the mid-point of a troubling and fast-evolving decade.” 

From product complexity to feeling overwhelmed, over two in five (43 per cent) Australians are solely seeking unregulated sources (compared to just 20 per cent using regulated sources only) “that they should conceivably be able to trust for financial advice and guidance,” adds Reid. “This is partly driven by cost as people turn to alternative sources for financial advice. To that end, half of Australians (48 per cent) are actively seeking out financial guidance or advice and are now turning to unregulated information sources (51 per cent). This is led by Gen Z (70 per cent), Millennials (70 per cent), Gen X (49 per cent) and Boomers (29 per cent).  

To try to comprehend financial services and products, they are talking to friends and family (22 per cent), using personal experience or search engines (20 per cent), social media (15 per cent), financial wellness platforms (seven per cent) and Gen AI tools (five per cent). News and digital media are also prevalent such as podcasts (eight per cent), online financial communities (nine per cent), news articles (12 per cent) and financial videos (seven per cent).  

“The ongoing crush on Australia’s ‘mental wealth’ – which encompasses self-esteem and the balance of a person’s confidence, resilience and understanding of how to create a sustainable financial future – needs a rebalancing of the equation,” says Reid. “If this does not happen soon, it will have far-reaching consequences beyond the financial services sector eventually infiltrating all products and services.”

“The disparity is evident in our financial understanding and inequality, but the scales are tipped further when we add in the challenges around digital financial literacy and AI. Clear, accurate and appropriate communication to all Australians is urgently needed to help re-balance the path to financial freedom – in whatever form it is craved by every individual.” 

“Cost-of-living is not going away and seven in 10 of us are feeling negative about the current economic climate (68 per cent, up 4 per cent since 2023),” adds Reid. “The dramatic shift witnessed since the onset of the pandemic in the language used and conversations had around money and its relationship with mental wellbeing is far from stabilising.” 

“Empathy is the new ROI. And in a world of unregulated noise and algorithmic coldness, the human touch is more valuable than ever. Financial brands that prioritise empathy, education and clear communication will not only build trust and customer loyalty but also contribute to Australia’s overall financial well-being in both the short and long term. Because, in the battle for financial guidance in an accelerating AI universe, the most relatable and empowering voice will win.”