robo advice

May
19

Stockspot CEO Chris Brycki says advisers will become financial ‘curators’

The financial adviser of the future will be a “curator of digital services”, with no alignment to any particular bank or wealth manager, says Chris Brycki, the founder of a disruptive robo-adviser that gives investors access to low-cost exchange traded funds. Financial Review Rich Lister Graham Tuckwell led a $3 million capital raising for Stockspot this month to help the robo-adviser expand its team of engineers, rather than build up financial advice expertise. “It’s going to be more about technology and less about teams of financial advisers, analysts and fund managers, who in our view don’t add the value that we can add,” Mr Brycki said. “Their [financial advisers’] role […]

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May
18

Millennials to drive huge passive funds management switch, threatening jobs

The massive generational group of Millennials will accelerate the seismic shift to passive fund management as they seek to grow and protect their wealth, costing the jobs of more stock-picking professionals, according to investment specialists. Jay Pelosky, principal of New York-based Pelosky Global Strategies, said the Millennials’ greater experience with technology compared with Baby Boomers, distrust of so-called “experts” since the 2008-09 financial crisis and debt burdens from university education, meant they were attracted to low-fee automated investing such as exchange-traded funds (ETFs) and robo advice. “There will be a much greater and sustained move towards passive investing in part because of the Millennials,” said Mr Pelosky, a former Morgan […]

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May
16

NAB-owned UBank launches robot to sell home loans

In a first for an Australian bank, NAB-owned UBank has launched an artificial intelligence “chatbot” for home loans. Using IBM Watson’s supercomputer technology, it aims to reduce the time it takes to complete an application for a home loan, by providing real-time answers to questions that is available 24/7. Called RoboChat, it has been trained using data collected from customer questions and will continue to learn as more customers engage with it, becoming smarter and more user-friendly over time. Users ask it questions such as “what term do you offer on home loans” and “do you offer redraws and how do they work”, with RoboChat offering on-the-spot help. A handful […]

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May
12

Class partners with robo-advice provider

Class has teamed up with an SMSF advice provider, allowing accountants administering SMSFs to offer financial advice services to clients without the need for an AFSL. The partnership with Plenty Plus, which operates under its own AFSL, allows accountants to generate advice without the need for their own license. Advice fees will also be calculated per transaction with no additional sign-up or ongoing fees. Class chief executive Kevin Bungard said the importance of financial advice for SMSFs has been brought into sharp relief by the introduction of the super reforms. “The impact of the super reforms on SMSF members and other investors frequently sees them needing advice beyond tax and […]

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May
09

Australians are turning to alternative types of investments

Australians unable to buy in an overheated property market are turning to other investments to boost their wealth. As property prices in capital cities particularly Sydney and Melbourne continue to soar and returns on cash in the bank remain around two per cent, many savers have had to look at alternative ways to grow their money. KILL your debts quicker than ever before Ray Corcoran, 29, who runs his own marketing consultancy has put off buying property and instead is investing his money through a Robo-adviser — an automated investment service. After having his savings in an online account collecting interest at a rate of 1.6 per cent he decided […]

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Sydney robo-advisor founded by ex-UBS portfolio manager raises $3 million in series B

Sydney fintech Stockspot has secured $3 million in a series B capital raising round, the startup revealed on Thursday. Stockspot is a digital investment advisor, commonly known as a robo-advisor, and a fund manager founded by chief executive Chris Brycki, a former UBS and BlueLake Partners portfolio manager. ETF Securities founder Graham Tuckwell and Australian firm Alium Capital, which invested in HealthEngine and Nitro last month, led the $3 million round. Stockspot also revealed that H2’s Toby and Ben Heap, who were already investors, and “algorithmic trading” entrepreneur Danny Bhandari contributed to the series B. “Graham is a global exchange-traded fund (ETF) pioneer, having invented exchange traded commodities and built […]

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May
03

KPMG sees robots taking over tax compliance

When 800 executives were surveyed for a World Economic Forum report published in September 2015, three-quarters said company audits would be performed by artificial intelligence by 2021. A similar proportion reckoned the world would have witnessed the first tax collected via blockchain within that timeframe, while 45 per cent said robots would be occupying places at the board room table. Clearly, the tax profession is ripe for digital disruption. In a new briefing paper, KPMG envisages a world where much tax compliance work is done by machines, leaving humans to pick up the more complex tasks. While computers will do the heavy lifting on the number crunching front, tasks requiring […]

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Apr
24

Macquarie’s plan to beat the investment robots

Investing robots and index funds are poaching billions of dollars from human fund managers, but Macquarie Investment Management head of the Americas Shawn Lytle says the firm is repositioning to cope with the seismic shift into passive investing. Globally, droves of investors are yanking money from high-fee active managers and parking their funds in passive strategies such as exchange-traded funds that ride the ups and downs of select markets. Macquarie Investment Management, a global division which manages about $US257 billion of Macquarie Group’s $US362 billion in assets under management, is aiming to differentiate by offering more unique actively managed equities, bonds and alternative assets such as infrastructure. “We are at […]

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