Paul Resnik

Australian businesses invested a record $3.19 billion in software in the first quarter of 2014 as they sought efficiency gains, while productivity inched ahead, according to gross domestic product statistics released yesterday by the Australian Bureau of Statistics.  

Reflecting the rising importance of technology within the economy, the seasonally adjusted private computer software spend rose 1.9% in the first quarter, to be up 8.1% from a year earlier. The report also indicated that the IT spend has hit record levels for several quarters.

The ABS data shows national productivity, as measured by GDP/hour, grew 2.2% from a year earlier and rose just 0.2% over the quarter. The Australian economy grew 1.1% during the March quarter, to be up 3.5% from the March quarter in 2013.

FinaMetrica, a leading global provider of web-based individual risk tolerance assessment tools for the wealth management industry, said regulation and the rapid growth in funds under management in Australia have encouraged the finance industry to seek efficiencies by using software to automate older and often flawed manual processes.

“Greater regulation of financial advisers through FoFA reforms, including the banning of commissions, is only adding to the pressure on advisers to upgrade their technology to streamline their processes and become more efficient,” said FinaMetrica Co-Founder Paul Resnik.

“A new breed of financial advisers is entering the market that are way faster in adopting new technology than the older generation. They see being technologically savvy as an important competitive advantage,” said Mr Resnik.

“Our risk profiling system, for example, enables advisers to accurately assess their client’s risk tolerance in as little as 10 minutes. The test, and the automatically generated report, helps advisers better match investments to the needs of their clients. Our software therefore enables advisers to meet regulatory obligations and, just as importantly, to do a better job,” he said.

“Our subscribers around the world almost invariably run profitable and efficient businesses. They tell us that the combination of our practical industry knowledge and up-to-date technology adds real value to their day-to-day activities,” Mr Resnik said. “Moreover, advisers’ clients like doing the test, it helps them better understand themselves in relation to financial risk matters. Furthermore, it makes the advice process more transparent. This invariably leads to a richer relationship with clients,” Mr Resnik said.

FinaMetrica has recently won several international awards for its risk profiling solution, which is used in 23 countries around the globe, in seven different languages.

“The effectiveness of our solution explains its growing global appeal. Following the global financial crisis, wealth managers and advisers are being forced both by market pressures and by regulators worldwide to assess the risk appetite of investors properly. Our tools and materials help to entrench best practice in their financial advisory process, said Mr Resnik.

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