Forget Hayne, here’s four ways technology will remake financial advice
Technology’s waves have swamped plenty of other industries, so it’s hardly a surprise they are washing over the provision of financial advice. So much so, there’s talk of yet another “-tech”: as in, AdviceTech. So what’s accelerating the pace of digitisation of financial advice? Four key themes come to mind: First, providers realise the current advice offering does not resonate with customers. It’s a poor “experience”. Stats suggest only one in five Australians gets financial advice. Second, the royal commission into financial services has made it abundantly clear the dominant advice model has too many conflicts of interest. Regardless of whether the inquiry separates product manufacture from providing advice, it […]
Credit cards on the decline as Visa says we have passed ‘peak plastic’
Australia has reached “peak plastic” and credit card transactions will now start to decline, as people increasingly adopt mobile and wearable payment technologies, according to the new country manager of Visa. In his first interview since becoming the head of Australia, New Zealand and the South Pacific at Visa in January, former local head of Citibank’s consumer banking operations Julian Potter told The Australian Financial Review the tipping point for change in consumer payments preferences would come when things like Myki or Opal cards could be stored on your phone in a digital wallet. “I use my phone and it just took a few goes and then the habit set […]
Should The Reserve Bank of Australia Issue a Digital Currency?
During a recent Australian Business Economists forum, the Head of Payments Policy Department for the Reserve Bank of Australia, Tony Richards, had a lot to share on cryptocurrencies and distributed ledger technology in the Reserve Bank’s perspective. Of particular interest was whether the bank might consider issuing a digital version of the Australian Dollar. According to Richards, Bitcoin and many other cryptocurrencies were largely impressive and admirable, but flaws in their design coupled with limited usage within Australia made them unnecessary and hence there was no need for the bank to issue a new digital version of the Australian Dollar. The Bank’s Approach To Cryptocurrencies Australia can boast of having […]
Open banking rules fuel financial planning shake-up
The financial planning industry is poised for a shake-up as the government’s plan to make it easier for customers to access banking data drives new technology that will allow advisers to respond in real-time to the changing financial circumstances of their clients. Open banking will also change the financial advice industry by allowing advisers to tailor their offering to individuals. Grow Super, part owned by IOOF, and Basiq, part owned by Westpac Banking Corp and National Australia Bank, have worked together to build the software that provides alerts to advisers about when to call their clients. The product will be white-labelled for advisory groups to enhance the quality of customer […]
Non-banks are the future of banking
The future of banking is in the hands of non-banks, says specialist lender Liberty. Non-banks, by nature, are “active, nimble, innovative and relevant”, allowing them to lead the competition, rather than be threatened by big banks. Non-banks provide a variety of solutions such as home loans, car loans, personal loans and business loans, as well as custom lending for those that need it. But as the financial world welcomes more and more technology, and increased regulation drives up costs, it leaves many to wonder how non-banks will respond to these changes. Asked about how non-banks will adapt to the future, group sales manager at Liberty, John Mohnacheff, laughed: “How are […]
Fintech Startup Trade Ledger expands UK operation. Appoints New CFO
Fintech startup Trade Ledger — which describes itself as the world’s first corporate open banking lending platform — has announced the opening of its European operation, headquartered in London, along with additional hires. Lisa Callaghan will move from the role of accountant to Chief Financial Officer at Trade Ledger’s Sydney office, after representing technology start-ups from inception through to early fundraising as a partner at Interactive Accounting. The UK operations will be headed up by a new Chief Innovation Officer with the company tapping some talent from Equifax UK. The expansion is designed to boost Trade Ledger’s international traction and product market fit, and should allow it to take advantage […]
Milliman and Ignition Wealth announce synergistic collaboration
Milliman Australia Practice Leader Wade Matterson and Ignition Wealth CEO Manish Prasad today announced a global collaboration between their two firms to combine Ignition Wealth’s integrated bank grade white label digital engagement and advice solutions with Milliman’s analytics, data and consulting prowess. Wade Matterson, Practice Leader, Milliman Australia and Manish Prasad, CEO, Ignition Wealth said, “We are delighted to announce a symbiotic new collaboration between Milliman and Ignition Wealth. Our businesses share a commitment to enrich the advice experience and enable better financial outcomes for every consumer.” The relationship has grown naturally from multiple synergies including an emphatic consumer-centric focus, growing global footprints and equally matched best in class status […]
Digital cash not on RBA agenda
The Reserve Bank has poured cold water on the idea of a digital Australian dollar, with head of payments policy Tony Richards declaring the demand isn’t there. A group of Australian fintech start-ups through industry body FinTech Australia last year wrote a letter to the RBA calling for a new digital currency, known as the ‘DAD’ or Digital Australian Dollar. “A centrally issued Digital Australian Dollar, backed by fiat [physical] currency, would enable payments to be made between participants in real time and 24/7 along the supply chain,” AgriDigital co-founder Emma Weston said last year. Meanwhile Othera CEO John Pellew said in the letter a ‘DAD’ would help his company […]
