Robo-Advice

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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Oct
02

Why Fintech Is The Most Important Industry Right Now

This is a fantastic article on Australian FinTech. And it’s also great information to pass onto those who don’t understand what FinTech is and are unaware of how they can benefit from using Australian FinTech products. Fintech is beginning to disrupt the financial world as we know it. The financial industry is now more focused than ever on technological innovation than at any other time. It’s so important, Malcolm Turnbull referred to it in his first speech as PM. But, for those unfamiliar with the term, here’s a quick explainer. Put simply, Fintech is financial technology; a digital revolution. It’s about major changes to asset management, business and personal loans, […]

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Sep
30

More super funds tipped to launch robo-advice

More superannuation funds are looking to implement automated “robo-advice” for members as a way of satisfying the competing demands of bringing down fees, while also improving their members’ access to financial advice. The pressure on funds to improve advice is coming from both regulators and a growing band of tech-savvy, bank-owned competitors.At the same time fees are in the firing line, and some super funds cannot afford large teams of financial advisers. “Robo-advice” is basic financial advice that a super fund can provide to members via online tools. Normally, it takes into account personal details such as the individual’s age, balance and retirement savings goals. It is increasingly viewed as […]

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P&N Bank to trial Decimal’s financial advice platform

Decimal Software, an Australian Securities Exchange-listed company that has developed a robo-advice platform, has entered the mutual banking market, striking an agreement with WA-based P&N Bank. Under the deal, which could be announced to the ASX as early as Tuesday, P&N will evaluate Decimal’s cloud-based platform with a view to implementing it to enhance the experience of customers shopping for financial advice. Decimal’s software is already being used by QSuper and Mercer, and the Sydney-based company has plans to sell into other financial services business, including banks, in Australia and the United States. It is hoping to capitalise on the need for financial institutions to accelerate their response to consumer-driven […]

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P&N Bank to trial Decimal’s financial advice platform

Decimal Software, an Australian Securities Exchange-listed company that has developed a robo-advice platform, has entered the mutual banking market, striking an agreement with WA-based P&N Bank. Under the deal, which could be announced to the ASX as early as Tuesday, P&N will evaluate Decimal’s cloud-based platform with a view to implementing it to enhance the experience of customers shopping for financial advice. Decimal’s software is already being used by QSuper and Mercer, and the Sydney-based company has plans to sell into other financial services business, including banks, in Australia and the United States. It is hoping to capitalise on the need for financial institutions to accelerate their response to consumer-driven […]

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