Young Filipino adults prefer human financial advisers over online tools

YOUNG ADULTS in the Philippines prefer to get financial and insurance advice from humans over online resources, a study by Prudential plc showed.

“Young adults in the Philippines actively seek guidance from human advisers and are less inclined to rely on digital tools for financial management. When it comes to insurance, the human touch matters most,” the insurer said in the report titled “Financial Mindset of Young Adults in Asia.” There were 657 Filipino respondents aged 20 to 35 for the survey.

The results showed that Filipinos are people-based planners as 76% of these respondents said they prefer human advisors, while the remaining 24% prefer digital tools.

This was the widest gap seen among the seven markets included in the study, which were the Philippines, Hong Kong, Indonesia, Malaysia, Singapore, Taiwan, and Thailand.

Indonesia had the most digitally progressive respondents, with only 51% preferring human advisors. Among the total 5,348 respondents surveyed across all seven markets, 64% said they prefer human advisors, while the re-maining 36% prefer digital tools.

Majority of the Filipino respondents said they rely on human interactions for financial guidance, with 81% having met or spoken with a financial adviser in the past five years.

This was higher than the 71% share recorded overall in the survey.

It showed that 76% of Filipinos also said they prefer consulting a human adviser for insurance advice over digital tools, also higher than the 64% seen for all markets.

Meanwhile, 36% of Filipino respondents believe that artificial intelligence (AI) can replace financial advisers within the next 10 years, close to the 28% overall share.

In terms of preferences, Filipino respondents said they are set on investing long term with a moderate risk appetite.

“They favor a balanced approach to risk in investing with a clear preference for long-term investment. Financial security and stability dominate their motivations,” Prudential said.

It added that 44% of young Filipinos prefer safe, low-risk options to protect their savings, while 37% prefer high-risk investments for higher returns. Meanwhile, 67% prefer to invest in long-term instruments, while 19% prefer short-term instruments.

Young Filipino adults are also optimistic about their financial future and are focused on enjoying the present despite health and financial concerns, Prudential said.

“Amidst a sense of unpredictability, they are enjoying the present moment. They are also highly positive about better personal finances in the future, although worries about increasing living expenses and family members’ health weigh heavily.”

The survey showed that even as 73% said they feel they are living in an era of unpredictability, 81% still expect their personal finances to improve over the next five to 10 years.

Some 32% of respondents also said they are focusing on enjoying the present more than worrying about the future. The report added that 44% see more opportunities from the uncertainties than risks, compared to the 38% that expect more risks.

However, respondents flagged related to increasing living expenses, family members’ health, and financial security and support in old age.

The top three reasons of Filipino respondents for buying insurance were to ensure family’s health expenses are covered, worries about unexpected events in the future, and to secure their incomes in case of unexpected health issues. — Aaron Michael C. Sy