Robo-advisers to expand into retirement advice
While automated advice providers currently cater for a lot of basic SMSF advice needs, one provider believes retirement adequacy will be the next frontier for automated advice. ASAP chief executive Jim Hennington said he expects the scope of advice that’s provided by automated advice providers to SMSFs will further expand over the next year. “At the moment, [it’s] very much focused on the transactions that accountants tend to get deeply involved with such as establishing an SMSF, purchasing property and LRBAs, and setting up SMSF pensions,” said Mr Hennington. He expects that automated advice will soon expand beyond this, however, into services such as retirement advice. “Over time automated advice […]
Millennials could pay over $300,000 in super fees
Millennials in a Fat Cat Fund could lose over a quarter of their super balance to fees. Robo advice platform Stockspot has launched its fifth annual Stockspot Fat Cat Funds report, which analysed a record 4,102 super and managed funds and highlights the link between high fees and poor long-term performance. A Fat Cat Fund is one that has performed worse than others in the market by more than 10% over two, three and five years, and typically has fees of more than 1.5% p.a. This year’s report has shown the number of Fat Cat Funds has decreased slightly by 18%, from 638 in 2016 to 521 now. However, it […]
‘Robo-adviser’ makes it onto Oxford Dictionaries website
Automated and artificial intelligence-based propositions across the sector will be delighted to see the term ‘robo-adviser’ has made it onto the Oxford Dictionary’s website. A ‘robo-adviser’ (noun) has been defined by Oxford Dictionaries as “an online application that provides automated financial guidance and services”, while the example sentence reads: “a robo-adviser programmed to build wealth over a decade”. The website focuses on current language and practical usage and frequently updates the latest popular words. Please click on the link below to read more…. Source: ‘Robo-adviser’ makes it onto Oxford Dictionaries website – Professional Adviser
Nothing to fear from robo-advice: Magellan
Hamish Douglass believes financial advisers should not fear robo-advice in an era where artificial intelligence and big data can dominate discussion.
Lindsay Tanner, ex-Sydney Swan Ted Richards at Six Park
It would not ordinarily be assumed that former Rudd and Gillard finance minister Lindsay Tanner, and former Sydney Swans AFL star Ted Richards, have much in common, but both have graduated from being heavyweights in their respective fields to unlikely employees at a young fintech start-up, Six Park. The Melbourne-based robo-advice company is plotting to undercut the banks and other rivals through lower fees and smarter financial advice, and is building out a powerhouse team — and app — to do it. It aims to add a human touch to automated elements through an advisory board that supervises the investments. “I’ve never been in a start-up before, but it’s a […]
Reimagining wealth management for the digital age
David Levi looks at why responding to the digital challenge is not just about defence but about shaping a new era of wealth management. As consumer needs and the financial landscape evolve, major banks are being forced to reconsider their approach to wealth management services. Colonial First State, for example, has predicted that the retirement of Baby Boomers would result in unprecedented transfers of wealth. Similarly, Citigroup announced its plans to triple the size of its wealth management business in Australia by 2020, as it targets customers with more than $1 million to invest. While the Association of Superannuation Funds of Australia (ASFA) reports that private sector forecasts superannuation assets […]
IDC names top 10 fastest growing fintech companies in A/NZ
IDC Financial Insights has unveiled a list of 10 fast-growing fintechs in Australia and New Zealand (A/NZ) as part of the broader FinTech 101 list for Asia/Pacific. “IDC’s FinTech Fast 101” refers to the fast-growing fintech players in Asia/Pacific based on extensive on-ground analysis of the dominant fintech players within the region. 10 Fastest Growing FinTechs in Australia and New Zealand Afterpay Touch Group Airwallex CoinJar Data Republic Harmoney HashChing identitii Prospa SocietyOne Xero Note: List is arranged alphabetically, Source IDC, 2017 IDC’s fintech list makes a reference to the Financial Insights’ Triple U framework — ubiquity, utility, and usability. This is a framework that evaluates fintech data across key metrics such as addressable […]
‘Robo-advice’ reference turning SMSF investors away
Some SMSF trustees are ignoring automated advice services on the false assumption that none of these services involve any human overlay, says an automated advice provider. Speaking to SMSF Adviser, Six Park chief executive Pat Garrett said SMSF trustees often hear the word robo-advice and are off put because they think everything with the service is automated. “There are parts of the service that should be automated such as the admin, because that’s how the costs come down. A lot of the processes associated with opening an account, assessing the client’s risk profile and their needs can be automated,” said Mr Garrett. On the investment front, however, across some of […]