Kantar Australia’s latest report, ‘Finding Financial Freedom’, has revealed significant concerns among Australians regarding their financial future.

The study, conducted online with 2,500 Australians between 1-16 July 2024, indicates that 69% of Australians are not optimistic about their financial prospects. This figure, although slightly improved from 72% in 2023, still represents a substantial majority.

The report highlights that financial stress is impacting Australians’ self-esteem, with 35% of respondents reporting a worsened financial situation over the past year. Females, Millennials, and individuals with children or lower financial knowledge are particularly affected by this stress.

The study found that half of Australians are turning to unregulated sources for financial advice, in a trend partly driven by concerns over costs.

Head of Qualitative at Kantar Australia, Carolyn Reid, said: “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.”

The report also reveals that two-thirds of Australians believe financial companies do not understand their needs or work to educate them on financial matters.

Reid said: “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).”

She added: “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.

“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.”