Robo-Advice

Mar
31

Can robots terminate the human adviser?

Financial planners and advisers would scoff at the idea of an automated system, or a robot, providing financial advice to clients based on answers to a few questions and the click of a button. Moreover, advisers are apprehensive of consumers embracing the do-it-yourself approach to investing, arguing that it is impossible for consumers to navigate complex investment choices and the myriad of financial products without guidance from trained advisers. Financial planning dealer group, Wealth Today’s managing director, Greg Pennells, recently labelled robo-advice a ‘cop-out’, and called on the corporate regulator to ban the technology. He said technology is useful for transactional services like buying and selling shares, stockbroking, mortgages, or […]

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YBR makes digital acquisition – brightday

Mortgage and wealth franchise Yellow Brick Road (YBR) has bought online advice platform brightday from News Corp. YBR executive chairman Mark Bouris says the addition of brightday is the latest in a series of acquisitions and announcements to deliver on the company’s digital strategy. “This acquisition is a key part of our direct and online strategy to be launched to consumers in FY2017,” Bouris said. “brightday serves a similar customer segment to Yellow Brick Road. Our 2020 customer strategy ensures we can service customers via the means and channel they prefer: many will prefer face-to-face support which is why we will double our branch network by 2020, white others have […]

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Mar
29

How to embrace change and survive digital disruption

Digital disruption is a trend that’s here to stay and no industry is safe. Traditional industries like manufacturing, transport, retail, tourism and hospitality, print media and entertainment may have been hit first, and hit hard, but it’s only a matter of time before others, including the advice industry, feel the heat. The banking and finance industry could lose almost a quarter of its revenue to fintech disrupters by 2021, based on a new report by PricewaterhouseCoopers. The report, ‘Blurred lines: How Fintech is shaping financial services’, says the disruption of the financial sector is already underway. It’s currently reshaping the nature of consumer banking and payments, and a second wave […]

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Mar
23

Robo advisers keen for improved regulation

Digital advice providers have given the thumbs-up to proposals for clearer regulations governing the sector, suggesting they would improve the legitimacy of the burgeoning industry. Josh Golombick, co-founder of robo advice provider CapitalU, said regulation from the Australian Securities and Investments Commission will “really put the spotlight” on robo-advice. “Maybe a lot of people may not have even heard of robo advice before this regulation came out – it just legitimises it further,” he said. Digital or robo advice involves the provision of simple to complex financial plans which are created using algorithms and technology. Research by KPMG show robo advice platforms will manage around $US2.2 trillion worth of assets […]

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Mar
23

Robo advice might not suit every SMSF but has its place

It seems oxymoronic for self-managed super fund investors to seek robots to do the investing for them. After all, SMSF members are supposed to be self-directed investors – they do their own investing and are not supposed to use a machine to pick their investments. But experts say SMSF members will increasingly turn to robo advice to help them select the right assets for their fund. Robo advice involves the use of an algorithm to suggest investments for consumers, using variables like their age, existing funds, income and time to retirement. It has been touted as a low-cost way for people with a relatively simple financial situation to receive financial […]

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Australian Fintech firm recognised as global market leader

This week, Australian-owned Financial Technology (Fintech) firm, Fincast, was announced as a category winner and finalist in Sony Corporation’s global Fintech Innovation Challenge.   Andrew Connors, Co-Founder and Managing Director of Fincast, said, “we are delighted to have won the “under-banked/under-invested” category in the Sony Fintech Innovation Challenge. Being recognised by a global brand like Sony is fantastic validation and endorsement of our applications”.   The Challenge attracted over 50 applications from Fintech firms from across 28 countries. Fincast was the only Australian company named as a finalist.   Fincast’s technology is unique amongst other automated advice capabilities, enabling appropriately licensed advice providers with 2nd generation technology that automatically adapts […]

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Mar
18

Stockspot set to revolutionise the investment landscape with new technology

Fintech company Stockspot is set to revolutionise the Australian investment landscape, by becoming the world’s first automated investment service to offer clients the option to personalise their portfolio with investment themes. Stockspot Themes is a new offering that lets qualifying investors steer the direction of their portfolio, by choosing from 14 different investment themes, including socially responsible shares, global shares, property and international bonds. Themes are combined with the Stockspot Model Portfolios to create personalised portfolios that are diversified across thousands of companies. “Some of our clients already own Australian shares, so want more of a tilt towards global shares in their portfolio. Likewise we have clients coming to us […]

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Mar
14

Decimal ‘pivots’ to institutional market

Nic Pollock, who commenced as Decimal’s new chief executive on 23 November 2015, spoke to InvestorDaily about Decimal’s change in strategy as well as its new executive structure. Decimal began the marketing push last week, with the announcement it now has over $3 billion in funds under advice on its platform. Along with the staffing changes, Decimal has also abandoned its adviser-targeted strategy (which saw it competing with the likes of IRESS, Rubik and Midwinter) by shifting its focus to building relationships with financial institutions. “In the second half of last year, that’s when we decided to pivot back to the enterprise view of the world and really make our […]

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