Podcast ¦ RO-AR.com : RO-AR.com : A new era of money management Changing generational views

Summary

This conversation is a podcast interview with Bob Winnington, CEO of the Money Advice Liaison Group (MALG). They discuss the MALG conference that took place on November 9th, 2023, which focused on the theme of the new demographics of debt. They explore the changing attitudes and behaviors towards debt among different generations, the need for financial education, and the challenges the industry faces in understanding and catering to younger generations. The conversation also touches on the use of technology, such as apps and AI, in money management and the potential risks and opportunities they present.

Key Points

1. The MALG conference on the new demographics of debt received positive feedback, especially from the Dutch advice community. The conference explored the different ways in which different generations approach debt and interact with financial organizations.
2. The keynote speakers at the conference included Lexie Mills, CEO of shift six studios, who discussed how different generations handle challenges with debt, and Jonathan Feilin, Head of Retail Lending Supervision at the FCA, who spoke about the cost of living crisis and consumer duty.
3. Younger generations may have different attitudes towards debt, with some being more resistant to using credit cards. The younger generation’s appetite for credit cards may have been influenced by seeing the difficulties others have faced with credit card debt.
4. Behavioral science and financial education are important in understanding and addressing the different ways in which people from different generations approach money management and debt.
5. There is a need for more financial education, as there is currently not enough being done to educate people on money management and debt. Education should focus on prevention and helping individuals understand their options and pitfalls.
6. Bringing younger people into the conversation and considering their perspectives is important in understanding and addressing the needs and preferences of younger generations.
7. Communication preferences and technology use among younger generations differ from older generations, with apps and instant messaging being common modes of communication. Traditional channels like phone calls and portals may not resonate with younger generations.
8. The use of technology, such as banking apps and AI, is changing the way people manage and understand their finances. However, keeping pace with these changes is a challenge for the industry.
9. It is important for the industry to stay ahead of fraudsters and criminal behavior, as technology advancements can also be utilized by them.

Key Statistics

• 36 years: Length of time MALG has been in existence
• 7 years: The duration of Bob Weddington’s tenure as CEO of MALG
• 1966: The year credit cards were invented
• 32 pounds: The price of an item that could be purchased using the “buy now pay later” option

Key Takeaways

• The MALG conference on the new demographics of debt highlighted the need to understand and cater to the changing attitudes and behaviors towards debt among different generations.
• Younger generations may have different preferences and aversions when it comes to debt and financial management, such as being resistant to using credit cards.
• Financial education is lacking, and more needs to be done to educate individuals on money management and debt to prevent problem debt and help those facing difficulties.
• Incorporating younger perspectives and understanding their communication preferences is important to effectively engage and serve younger generations.
• The industry needs to keep pace with technology advancements, such as apps and AI, to better support individuals in managing their finances and prevent fraudulent activities.