Why financial literacy levels will continue to grow in 2022

According to Craig Keary, chief executive of advice tech provider Ignition Asia Pacific, social responsibility expectations have accelerated throughout the COVID-19 pandemic and the industry is “ideally positioned” to meet the demand.

“Not only can it help people invest their money in a way that is socially responsible and deliver affordable digital advice for simple insurance, savings and retirement needs, it can also play a key role in improving people’s wellbeing,” Mr Keary said.

“For example, raising financial literacy levels can help people make better financial decisions and create more prosperous futures.

“Financial services companies can use technology to enable greater access to proactive financial education, calculators and financial health-check tools, in a cost-effective and efficient way.”

Mr Keary added that government and regulators are now working with industry to improve the affordability and access to advice – including the recently released Education Standards for Financial Advisers policy paper and ASIC’s upcoming Quality of Advice review – which will help advisers offer more support to Australians.

“The Federal Government and ASIC have both recognised the role that technology, via digital advice, can play in helping achieve this, and we anticipate that 2022 will see these ambitions come to fruition,” Mr Keary said.

Last year, Lifespan Financial Planning CEO Eugene Ardino called on government to launch a campaign aimed at raising financial literacy awareness for younger people.

“Try to have more of that within schooling perhaps, so that when people get out there and they have to make financial decisions and have to engage people to help them to do that, they’re doing it with a bit more awareness,” Mr Ardino said on an episode of the ifa Show.

“There’s nothing better than dealing with a client who understands what you’re talking about.”

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.