Generation Y is the savviest age group when it comes to their finances and more Australians should follow their lead to save more on financial products, according to Australia’s leading financial comparison website RateCity.com.au
Aged between 18 and 34, Gen Y is the most active group of online banking customers, and is more likely to search, compare and apply for financial products on RateCity than any other age group. This is despite stereotypical assumptions of Gen Y’s lack of responsibility.
In fact, according to RateCity’s inaugural Insights Series: Comparison Audience report, Gen Y is RateCity’ biggest audience segment, making up 43 percent last year.
The study also found Gen Y has a higher intention to switch or apply for financial products than other age groups, with 19 percent more likely to be looking to invest their money. Fewer Gen Ys own a credit card compared to other generations, but more are planning to apply for a credit card in the next 12 months.
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Gen Y is also highly active in comparing and applying for insurance, for instance 38 percent of gen Ys shop around for car insurance – the most active for car insurance shopping than any other age group.
The RateCity Insights Series: Comparison Audience report investigated each generation’s online shopping habits including their intentions to apply for financial products. Other key findings included:
- More females (63 percent) compare and apply for financial products at RateCity than males (37 percent)
- Three-quarters (74 percent) of RateCity visitors are looking to change insurance policies or purchase one for the first time
Alex Parsons, RateCity’s CEO, said the results revealed the serious segment of banking customers who use RateCity.
“Our visitors are serious about saving money. They want to know more about financial products, how their products compare and are willing to switch financial institutions if they find a better value deal.
“More Australians are using the internet as their first source of research to compare and shop for products, and RateCity is a really useful tool to help Australians understand their financial products and how to make a good decision about their finances.”
Mr Parsons said despite the growth of online retail, more Australians could benefit from using RateCity to save on their financial products.
“Australians are spending more time online, comparing products and making purchases than ever before and the numbers are growing. For instance, according to Nielsen research, over 11 million Australians visited a shopping website in March 2013, which was about three-quarters of all online Australians.
“About 15.5 million Australians are connected online and while this number is growing, there is still a significant number of consumers who are wasting potentially thousands of dollars by not using websites such as RateCity.com.au, comparing their financial products and switching to better value deals.
“We see thousands of Australians comparing and switching products to save money every day and we are urging more Australians to take advantage of banking competition and compare their financial products online to see how much they could save,” said Mr Parsons.