Robo-Advice

Mar
03

Robo-advice drives Decimal revenue

Software provider Decimal has announced its half-year net loss after income tax has decreased by 14 per cent thanks to lower operating costs and increased revenue from its robo-advice offering. During the six months to December 2015, the company’s net loss after income tax was $4.2 million, down from $4.8 million during the same period one year ago. “The company completed a strategic and operational review during the period under review which led to a decision to reduce operating costs,” the statement said. “The Decimal platform has reached a level of maturity to enable enterprises to fully benefit from the business model in terms of low implementation and maintenance cost […]

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Feb
20

Macquarie takes stake in fintech minnow

It’s a positive sign to see Macquarie Group investing more in the Australian FinTech sector. They seem to be getting very active very quickly. It will be interesting to see which of the other big banks will follow suit…   Macquarie Group has waded deeper into the fintech sector with an equity agreement with listed marketplace lender DirectMoney to assist in the development of what the minnow claimed would be a new securitisation funding market. In a boost after a bumpy listing in July, DirectMoney yesterday said it had sold $5 million of personal loans to Macquarie and secured the investment bank as an adviser to assist access to funding, […]

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Feb
16

Sydney roboadvice startup ProAdviser is a cheaper way for millennials to get investment advice

When finding good financial advice is outside your budget, important questions about goals and risks can become hard to manage and execute. Buying based on recommendation means that your needs are met through a wider range of more realistic choices, and a realistic assessment of what your money can do gives you more protection and certainty, but like most things it comes at a price. Sydney startup ProAdviser aims to slash the hefty price of financial advice with an online fund manager and investment adviser. The online platform manages all the trades, investment, and administration for the client. “What we’ve essentially brought to the market is a quicker, cheaper and […]

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Announcing a new partnership: Republic Wealth Management

Sharesight are pleased to announce a new partner, Republic Wealth Management. Republic is a robo-adviser catering to financial planning companies. They take care of the portfolio construction, execution, and on-going management of portfolios on behalf of financial planning companies. The portfolios consist mainly of ETFs. Republic and the advisers they serve will be utilising a branded edition of Sharesight and API to administer and report on client portfolios. This B-to-B approach makes sense. One of the challenges for any asset manager is convincing people to hand over money. This is especially true in the online advice space, which by nature lacks face-to-face meetings and a track record. Portfolios constructed of […]

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Nov
16

The rise of robo advisers

The notion of robots delivering financial advice is one of the hottest topics in financial planning circles. Even Australian Securities and Investments Commission chairman Greg Medcraft has weighed in, saying “robo advice” could slash investment costs and eliminate conflicts of interest. Judging by the number of new offerings coming on the market, this will be a growth sector, but how easily will people accept advice delivered by rules-based algorithms? The most common answer is that “millenials” will lead the way on “robo-advice” take-up, as they trust technology in a way their forbears do not. The cost of delivering advice is generally estimated at one-fifth to one-tenth of fee-based financial advice, […]

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Nov
13

Macquarie targets robo-advice at mass market

Macquarie Group is targeting retail investors and self-managed super funds with a new robo-advice program that will provide detailed recommendations matched to customers’ investment priorities. The bank will next month launch an online tool allowing customers to buy investment advice covering asset classes including shares, exchange traded funds, and managed funds from around the world. Macquarie Wealth Management chief investment officer John O’Connell​ said the advice would draw on a database of 30,000 investment options globally. OwnersAdvisory is aimed at selling lower-cost investment advice. After gauging customers’ risk profile through an online questionnaire, Mr O’Connell said the program would produce “a written outline of exactly what we would do if […]

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Nov
06

ASIC’s Greg Medcraft says ‘robo advice’ can reduce fees and conflicts

Australian Securities and Investments Commission chairman Greg Medcraft says computer-generated financial advice, or “robo advice” could slash investment costs and eliminate conflicts of interest in the maligned financial planning industry. ASIC has established a “robo-advice taskforce”, which is investigating the suitability of potential entrants, who use computer algorithms to match investors with suitable assets at a lower cost than human advisers. ASIC wants to know how they intend to comply with best interest duties, how algorithms are developed and tested, and how the people running the start-ups are trained and compensated. In a speech to a Finsia lunch in Sydney on Thursday, Mr Medcraft said ASIC believed digital financial advice […]

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Oct
23

The FinTech future is here

Viewing the below chart of web searches, you could be forgiven for thinking that fintech has only really emerged in the past year. But the financial services sector has been innovating with technology for centuries – so why has it got so big recently? Source: Google The coming together of financial services and technology is nothing new. It will come as no surprise to know institutions have been using technology to improve their middle and back offices for as long as computers have been around. We used to call this banktech. In fact, banktech can be traced back to the 18th and 19th centuries when traders would use carrier pigeons […]

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