New research from the National Centre for Vocational Education Research (NCVER) found millennials are less likely to be married, more likely to be living with their parents and significantly less likely to be owning or buying a home in comparison to 10 years ago. In the current economic downturn, any challenges millennials have had with finding stable, full-time work will continue or be exacerbated, leading to more money being saved than spent among this demographic this year.
A digitally savvy group, millennials present an opportunity for Australian FIs to become supportive financial partners and guides as this group spends the upcoming months building financial stability and planning their long-term financial investments.
While almost 50 per cent of adults in Southeast Asia remain “unbanked” and do not own a bank account, this is not a significant market segment for Australian FIs. Millennials’ changing banking behaviours during the pandemic, however, present countless opportunities for FIs to develop and deliver unique digital services to address their new needs.
Australian FIs are most fragmented
Integrating cybersecurity, fraud control and compliance functions across an organisation is a challenge for FIs across the region and Australia is particularly lagging behind. While 43 per cent of Asia Pacific FIs are operating these as independent functions, a concerning 58 per cent of Australian FIs have them operating in siloes.
As crime syndicates become more sophisticated in their approaches and more aggressive in their attacks, it will be critical for FIs to have data, teams and systems that are interconnected and operating collaboratively to ensure threats are detected and addressed.
Almost half (45 per cent) Australian FIs have their cybersecurity and compliance teams collaborating, while 65 per cent of Asia Pacific FIs see higher collaboration between cybersecurity and fraud departments. This reflects Australia’s highly regulated market, including the compulsory data breach notifications Australian businesses need to report. This report recently highlighted the finance industry as the second highest reporting sector, accounting for 14 per cent of all breaches.
With 36 per cent of Australian FIs seeing compliance management as a key challenge, it is clear that navigating and managing industry regulations requires proactive and dedicated resources.