Nigel Baker
Fintech start-up, Scientiam, has launched a low cost digital advice solution to help financial advisers deliver scalable advice to the growing number of Australians who can’t afford or no longer require comprehensive, personal advice.
Established in 2019, Scientiam spun out of Sydney-based financial advisory firm Arch Capital, which initially developed the solution for the group’s staff and family members, C & D clients, and the adult children of existing clients, as part of its intergenerational advice proposition.
According to Nigel Baker, Founder of Scientiam and Managing Director of Arch Capital, Scientiam is built by advisers for advisers to solve common problems inside every advice business.
“Many advisers are grappling with how to profitably service segments of their clientbase and, beyond that, segments of the market that need advice but are currently missing out because they’re too young, don’t have enough to invest or have relatively simple needs,” he said.
“Everyone who is interested in building and protecting their wealth, and planning for the future, should have access to quality advice. It should not just be something that’s restricted to the lucky few who can afford it.”
Mr Baker said Scientiam circumvented the need for businesses to sell large tails of smaller, unprofitable clients by providing a relatively cheap, easy to implement cloud-based solution. It also enabled advisers to diversify their clientbase and build a strong pipeline of potential clients.
“As advisers, we want to help people but unfortunately that is getting harder to do due to rising costs. This is a sad reality because some clients have been loyal for 10-20 years but, over time, they no longer fit a firm’s ideal client profile,” he said.
“With Scientiam, advisers can stay in touch with clients, deliver a compelling service and an excellent experience but not at a financial or opportunity cost to the business. Scientiam releases advisers to focus on servicing higher fee paying clients with complex needs.”
“If it currently costs around $100,000 per annum to look after 50 clients, Scientiam’s cost to serve is just a few thousand dollars.”
Scientiam has a subscription-based model and is available exclusively through financial advisers. As part of the registration process, all users must submit an adviser code and be linked to a financial adviser.
Scientiam aims to increase financial literacy, educate clients and act as an “incubator” for the referring adviser. Clients can access calculators and tools, track their spending, and access low cost diversified superannuation and investment accounts.
As a client progresses in life and their needs change, the system is designed to push them to seek comprehensive, personal advice from their referring adviser.
“Technology is moving fast and this is making it possible for advisers to improve client engagement and potentially help thousands of people to achieve their goals,” Baker said.
