Women shun financial advisers in favour of money advice from robots
Robo-advisers are reporting a substantial spike in the number of female investors, citing a “perfect storm” of the fallout from the banking royal commission and the empowerment of the #Metoo movement. Six Park reveals that accounts held solely by women have more than doubled in recent months to sit at 40 per cent, up from 20 per cent in January. The firm delivers financial advice online using algorithms and technology in place of a human financial adviser. The greatest number of Six Park accounts are held by 26-35-year-olds and 35-50-year-olds. Average account sizes are $31,761 and $43,342 respectively. Across all ages, the average amount invested by females is almost $55,000. […]
AFL great says Hayne will help robo-advice make mark
The findings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry could play into the hands of robo-advice, reckons Ted Richards, the former AFL great turned director at Australian robo-advice platform Six Park Asset Management. “The royal commission has been sad for certain parts of Australia, but a fantastic opportunity as well,” the former Essendon Bombers and Sydney Swans player says. “We’ve been able to receive a lot of attention off the back of the (Hayne) inquiry.” Richards expects Commissioner Kenneth Hayne’s report and its ramifications to upset the traditional advice delivery model. “Robo-advice really grew in the US on the back of the financial […]
AI platform claims it can advise at 1/20th of cost
A US-based digital platform wanting to set up a presence in Australia says it is able to provide financial advice through artificial intelligence for 5 per cent of the cost of a human adviser. New York-based fintech firm Pefin said its platform uses AI technology to provide holistic, affordable and fiduciary financial planning and advice, encompassing every financial decision a consumer would need to take, all for 5 per cent of the cost of a human adviser. It said it is currently setting up an Australian subsidiary to customise the product for the Australian market. “Pefin will license its AI technology and create a uniquely customised Australian platform that provides […]
Australians are turning to robo-advisers to boost their returns
Investors hunting for decent returns on their hard-earned cash are looking at other options outside of parking their money in the bank. Interest rates on term deposits and online savings accounts remain around 1 to 2 per cent while the value of Australian sharemarket has climbed by 9 per cent over the past 12 months. Shares have also paid dividends averaging a healthy 4 per cent. Accountant Guy Bane, 29, said he was always looking to diversify his investments and he had steered clear of keeping cash in the bank. Instead he used robo-adviser Stockspot to do the hard work for him. “I’m trying to build a bit more wealth […]
Fintech 101: Core concepts for the future of banking
Everyday it feels like someone, somewhere has coined a new banking term. But as Australia continues to take big steps towards innovation, the average Aussie might feel left in the dark when it comes to understanding what’s in store for the future of banking. So to keep you in the loop with all the latest in fintech, we thought it might be worth getting the basics down first. What is fintech? Put simply, fintech stands for ‘financial technology’ and can refer to any technology that is used in the finance industry to provide products and services. Just remember that fintech usually refers to newer, innovative products and services. For example, […]
MyPrivateBanking 2018 global report ranks Ignition Advice #1 innovation and flexibility
MyPrivateBanking, one of the world’s leading independent financial services research houses, has named Ignition Advice as the world’s most innovative and flexible robo-advice solution. Headquartered in Kreuzlingen, Switzerland, MyPrivateBanking Research is an independent firm specialising in research and analysis for wealth managers and financial services firms. With more than two decades of experience MyPrivateBanking boasts a team of highly experienced analysts and industry experts. “Ignition offers a strong product proposition and offers the entire spectrum of services demanded by this industry, making it a strong and dependable partner. The solution offers a wide range of customisation capabilities across the spectrum of business needs. In particular, the approach to content and […]
Millennials, not baby boomers, are the future for digital wealth platforms
A new study examining consumer preferences has found that robo-advice and automated investment management services are overwhelmingly more popular with younger investors. Millennials, those currently in their 20s and mid-30s, are three times more likely to use automated investment services such as robo-advice compared to baby boomers, according to research by Crealogix. The study of 1,200 UK consumers commissioned by Crealogix, which provides digital banking solutions, found younger generational groups, in particular millennials, are substantially more open to automated financial advice and investment management when compared to more mature age groups. Just 23 per cent of baby boomers, those born between 1946 and 1964, are open to receiving a digital […]
Advisers with robo capabilities will have an edge
While standalone robo-advice won’t attract affluent investors, it will offer a competitive advantage to traditional wealth managers over competitors, GlobalData says. The research company said that robo-advisers alone didn’t attract assets under management, and that high net worth (HNW) investors generally only entrusted small portfolios to digital-only platforms. GlobalData’s Technology in Wealth Management: Drivers for Adoption and Future Trends survey found that demand for robo-advice was growing, however, meaning that offering it could strengthen human advisers’ value to clients. Forty per cent of private wealth managers surveyed noted strong demand for the technology from clients, most obviously in the Asia-Pacific region. “Despite some drawbacks robo-advice is a competitive advantage that […]
