Fresh research from Roy Morgan has found that CBA is the most used bank by Australians who seek out the services of a financial planner or adviser.
Released this week, the research reveals that as of May 2018, 1.96 million Australians aged 14+ (9.7 per cent) have used a financial planner/adviser to purchase superannuation or managed funds.
This group accounts for $703 billion in total wealth management products (of over 27 per cent of the wealth management market) and has an average value of nearly $360,000.
CBA is the bank dealt with by over a third (34.6 per cent) of financial planner/adviser users, well ahead of ANZ (23.9 per cent), Westpac (23.4 per cent) and NAB (20.7 per cent).
The new research comes after CBA recently announced plans to demerge its wealth management and mortgage broking businesses. However, it is expected that the bank will retain its in-house financial planning services.
Speaking of the move, Roy Morgan industry communications director Norman Morris said: “The large banks are also those that are used by clients of planners and advisers, and as such, if banks exit the planning market, there is the potential to weaken the banking relationship with their customers. Any weakening of existing planning or banking relationships would leave the way clear for new entrants such as fintechs to enter the market.
“The data used here is only a small part of what Roy Morgan has been collecting and analysing for many years on a wide range of areas relating to users of financial planners and advisers.
“As a result, we have a unique database that enables an in-depth understanding of this important market in this time of major change.”
One-third (33.0 per cent) of wealth management customers who are in the top 20 per cent of the market by value (top quintile) have used a financial planner/adviser, well above the 9.7 per cent for the total population. Although the top quintile by definition accounts for only 20 per cent of wealth management customers, they are responsible for nearly two-thirds (63.9 per cent) of the total market value of superannuation and managed funds.
The other groups that have above-average use of financial planners/advisers include those with incomes of $130,000 or more (22.1 per cent), Baby Boomers (18.5 per cent), those aged 50 and over (16.6 per cent), Pre-Boomers (15.8 per cent) and the AB Socio-Economic Quintile (13.7 per cent).
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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