Samantha Horton

Leading Asia Pacific saving and investment platform, Syfe, is set to acquire Selfwealth, one of Australia’s largest digital investing platforms, following a successful shareholder vote on the all cash AU $65 million transaction.

Built on the pillars of access, advice and affordability, Syfe caters to the wealth needs of individuals through diversified proprietary portfolios, cash management solutions, and brokerage. Selfwealth has a trusted and established brand and platform among Australian investors and will provide Syfe with immediate access to a large, committed, and high-quality Australian customer base.

Subject to all remaining conditions being met or waived – including necessary court approvals – the acquisition is expected to be completed on 7 th May. This will result in Selfwealth being delisted from the ASX to begin privately trading as Selfwealth by Syfe, with operations continuing to be headquartered in Melbourne. Group Chief Operating Officer and Head of International Operations, Samantha Horton, will lead the integration on behalf of Syfe.

Commenting on the transaction, Syfe Founder and CEO, Dhruv Arora, said the acquisition aligns with Syfe’s business objectives to grow its presence and investor-base in Australia.

“Selfwealth’s strong user base and credibility in the Australian market make it a natural strategic fit for Syfe. The acquisition will provide a seamless transition for customers, unlocking access to Syfe’s broader suite of investment products and technology-driven solutions over time, while retaining everything that Selfwealth customers presently enjoy,” Mr Arora said.

“We established Syfe in 2019 with a goal to democratise wealth management by making it more accessible and affordable through innovative technology and quality advice. Since that time, we have helped hundreds of thousands of customers to grow their wealth and invest in a better future.

“We believe now is the time to strengthen our presence in Australia. Despite the largest intergenerational wealth transfer in history presently underway, a large proportion of Australians are still keeping their wealth in savings accounts, foregoing significant market returns. For many, the missing link is objective, transparent advice and access to the right investment solutions. Syfe is well placed to tap into this opportunity through advice and education as well as a low-cost, innovative offering that doesn’t compromise on quality.”

Syfe and Selfwealth’s strengths are complementary with a shared focus on long-term investing, mass affluent investors, and a commitment to putting investor needs first. The deal will unlock greater potential to increase the level and speed of product innovation, while significantly improving user experience.

Selfwealth CEO, Craig Keary said “Established in 2012, Selfwealth has over 13 years developed a strong and trusted brand and grown a loyal customer base.

As CEO I am immensely proud of what has been achieved for both customers and shareholders, particularly over the last 18 months. With a refreshed Board and new leadership team, significant progress and success has been accomplished in a short time as we transformed the business to meet shifting customer demands.

Today, we see great value in entering a new phase for the Selfwealth business with Syfe’s vision to enhance the digital investing experience, which is aligned with our commitment to providing accessible and innovative investment solutions to our clients. We are confident that this alignment will deliver enhanced value to all our customers.”

Australia’s growing wealth opportunity

Australia has a significant ‘mass affluent’ population. Meaning, there are nearly 12 million Australians who have investable wealth over $US 100,000 and that number is growing.

“The ‘mass affluent’ growth is a trend across the region and people’s need for quality wealth management services is expected to grow exponentially in the coming years and Australia will be at the forefront,” Mr Arora said.

“Despite unprecedented growth, there remains a gap in the digital investment and advice space, with a lack of options between traditional pure DIY brokerages and expensive private banking or independent adviser services. Syfe’s holistic platform addresses this gap and is our true differentiator, providing global market access, cash management, and end-to-end wealth solutions for retail and corporate investors in over 60 markets. We are excited to extend our offering to more Australian investors.”

The post Syfe to acquire leading Australian investing platform Selfwealth appeared first on AdviserVoice.

Craig Keary

SelfWealth Ltd (ASX: SWF) (“Selfwealth” or “the Company”), leading Australian fixed-cost low-cost broker, has announced its half year financial results for the six months ended 31 December 2023 (‘H1 24’).

Selfwealth achieved continued profitability, after its maiden profit in FY23, with Underlying Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of $3.5 million, up 45% from $2.4 million in the previous corresponding period (pcp) and Net Profit After Tax (NPAT) of $1.6 million, compared to $0.1 million pcp.

Commenting on the result, Selfwealth’s Chair Christine Christian AO said “As we reported last August, FY23 was a year of turnaround and change for Selfwealth and it is pleasing to see that because of this action, the positive momentum in profitability has continued. And importantly, we have now achieved five consecutive quarters of positive cashflow and reduced our operating cost base by 20.7%2.

“These results are testament to the focus and drive of the renewed Board and Selfwealth team.

“During the period, we appointed a new CEO and continued our Board renewal with the appointment to the Board in November 2023 of Adam Lewis, ex-partner of McKinsey & Company.

“Craig Keary, a highly experienced financial services leader, was appointed CEO in October 2023, and has quickly brought together a new Leadership team. The new team are highly experienced industry executives and have the expertise and know-how Selfwealth needs to scale the business for long-term, sustainable growth.”

Selfwealth experienced a surge in new customers and trading activity during the COVID-19 pandemic years, particularly in FY21 and FY22. It is pleasing to note that the Company has been able to successfully retain its loyal customer base in a time of intense market competition. While active trader numbers have remained steady, the composition of high value customers has increased compared to last year.

The transformation program currently underway focuses on platform review and optimisation, a streamlining of operations to increase efficiencies, as well as measures to reduce cost-to-serve.

Craig Keary, Selfwealth’s Chief Executive Officer, commented “Since taking on the role of CEO, I have been working with the Board and the Executive team to deliver on the transformation program in order to be fit for purpose and scale the business so it is well positioned for growth.

“Growing profitably and maintaining the strong financial position of the company is fundamental to our long-term strategy, as is retaining our loyal active traders and focussing on the development of High-Net-Worth traders, particularly through our efforts in developing an elevated customer experience.

“We have been ‘right-sizing’ the business to do this, and it is pleasing that during the last half, we have reduced our operating cost base by 20.7%.

“Selfwealth is focusing on its core business activities, including supporting our strong customer base and particularly, attracting and retaining High Net Worth customers. As well, we are actively seeking out opportunities for diversification to support growth through market cycles and changing customer preferences.”

While the period saw subdued trading conditions with the ASX market trading volumes down compared to pcp, January saw a noticeable uptick.

Keary said “Selfwealth’s recent performance combined with the leadership and operational changes made over the last half have delivered a stronger and more focussed business. This will support the company to take further advantage of its competitive position as a leading retail, ‘fixed-cost, low-cost’ broker with a trusted brand.

“Together with the new leadership team, I look forward to better serving our clients and taking advantage of the potential market and industry opportunities that the prevailing environment presents.”

The post Selfwealth half year financial results show continued profitability, strong cashflow and increase in Funds Under Administration appeared first on AdviserVoice.

Craig Keary

A discussion paper released by^[1] the government seeks community and industry views on how the superannuation system can best provide the security and income Australians need as they live longer and healthier lives in retirement.

Craig Keary, CEO of Selfwealth, Australia’s largest independent investment platform, noted the timeliness of the initiative.

“We’re at a point in time where Australians achieving their wealth creation goals — which leads to them living their best retirement life — is of critical importance.

“The upcoming consultation suggested by Treasurer Jim Chalmers and Financial Services Minister Stephen Jones is well-timed given rising cost of living pressures, along with longer life expectations and a heightened demand for retirement solutions. It’s incumbent upon all in the financial services community to work together with government and industry stakeholders to ensure that customers have access to the best tools, products, and guidance to enable them to lead their best retirement life.

“At Selfwealth we have always provided our customers with the tools and insights to expedite these goals, and their pursuit of them is why we facilitate access to markets and the means to navigate them.”

——–

[1] Superannuation in retirement

The post Selfwealth welcomes government’s release of a consultation on the retirement phase of superannuation. appeared first on AdviserVoice.

Craig Keary

The Quality of Advice report made by Michelle Levy to the Federal Government makes it clear that technology, in particular digital advice, will be central to helping more Australians access the advice suited to their specific needs and situation, says Craig Keary, CEO Asia Pacific, Ignition Advice.

Mr Keary says the final report seeks to use four main levers to achieve its aims of making financial advice more accessible and affordable:

• broadening the scope of what is considered personal advice, with most interactions with customers becoming “personal advice”
• eEncouraging institutional participation in advice, including banks, super funds and insurers: that is, organisations with resource scale which can make large investments in advice supply
• recommending that the SIS Act be amended to expressly permit super funds to provide personal advice to their members on a “fund-pays” basis, removing doubts over this issue and effectively expanding intra-fund advice
• encouraging the application of digital advice technology, by financial advisers and organisations providing advice.

He says the final report is a strong endorsement of the potential role of digital advice tools to make advice more widely available at no or modest fees.

“The high price of advice indicates that demand is already soaking up Australia’s 16,000 financial advisers, even before an extension of what is considered as personal advice.  Digital advice tools will allow many more consumers who would benefit from advice to be served.

“Moreover, Ms Levy sees the use of digital advice tools as improving the quality of advice delivered to consumers.

“In her report, Ms Levy points to technology as having a crucial role to play in helping more Australians access financial advice, in particular by allowing institutions to offer advice at the simpler end of the advice spectrum to its customers.

“Indeed the only realistic way in which the advice gap can be solved by making low-cost advice available to large numbers of consumers.

“The report also highlights the ability for financial institutions to use digital advice technology to make their financial advisers more efficient, which is something we are already seeing work to good effect in the UK.

“Indeed Ms Levy concludes that the provision of digital advice does not require specific regulation or specific regulatory changes but is inherent in the drive towards “good advice”.  Rather, the ability to provide widespread digital advice is an outcome of the recommendation that a “good advice” duty applies to any person or institution providing advice, including digital advice tools, rather than being an individual financial advice construct.

“By implication it is clear that financial institutions – banks, super funds, insurers etc – can use digital hybrid models today, rather than wait for any changes to the regulatory framework.  By allowing financial advisers to use digital advice tools, they will be able to serve many more customers, at much lower cost, than has been possible in the past.

“The fundamental extension recommended is that employees of financial institutions who are not qualified financial advisers would also be allowed to provide personal advice (for example call centre or branch staff).  It should be kept in mind that one of the recommendations is that the definition of personal advice is greatly expanded, to include many customer conversations which today might not be considered personal advice.

“The outcome should be an environment where more complex advice needs will continue to be met by qualified financial advisers, including via hybrid models, while simpler advice needs will be met by financial institution staff who are not qualified financial advisers.  Such employees would be tightly supervised with digital advice tools to provide assurance to the institution that “good advice” was being delivered.

“The Final Report is the culmination of what has been the most productive government review of the financial services industry in many years and we look forward to its implementation,” Mr Keary says.

The post Digital tools central to quality of advice appeared first on AdviserVoice.

Craig Keary

The Federal government has the opportunity to reset the rules around personal financial advice to benefit many thousands of Australians in its response to the final findings of the Quality of Advice Review, says Ignition Advice APAC Chief Executive, Craig Keary.

Keary says financial advice in Australia in 2023 will be largely driven by the Government’s response to the Quality of Advice Review final report handed down by Michelle Levy.

“This is an opportunity for a desperately needed reset of personal financial advice. We hope that the Government opts to implement the Review’s recommendations in their entirety, rather than being selective,” he says.

“We believe 2023 will see many organisations moving from strategic thinking to strategic execution around digital advice. We are also seeing executives and their teams think more broadly about how technology can play a role in making advice more accessible and more affordable, while also making it available at a time when customers need it most.

“Headwinds and economic challenges are almost certain to continue in 2023, so the need for Australians to have safe and affordable access to guidance and advice that can help them manage their money, protect their wealth and plan for a comfortable retirement is even more important.”

Reflecting on the Quality of Advice Review process throughout 2022, Keary says he was impressed with the quality of the debate and the collegiate approach of the industry and the diverse group of stakeholders who have a shared desire by to get Australia’s model for financial advice right.“Ms Levy’s brief was to think about affordability and accessibility for the end consumer, not interests of the industry, and the Proposals Paper reflected that significant changes to the current state were needed to achieve this.

“Post the Royal Commission, we have ended up with advice as a cottage industry which has become unaffordable for many who would benefit from it. Tinkering at the edges will not help. Ms Levy clearly understood that and has indicated that her final report largely reflects the thinking in the Proposals Paper.”

Further, Keary believes the majority of the industry has acknowledged that fresh thinking and a logical narrative was required.

“Ms Levy’s approach in starting with a ‘what’s possible’ model encouraged and fostered the industry to think about ‘how’ as opposed to ‘why not’,” he says.

“The objections we have heard are partly from those who benefit from the status quo, but also based on a misunderstanding of the scope of advice.  Most contention has focused on product replacement, but this is just one small part of what Ms Levy would consider as personal advice.

“For material improvements to be achieved, realistic solutions must be considered including the role of technology to scale advice and make good advice affordable and accessible to all Australians who want and need it.”

As a result, Keary says current trends continue to lend themselves to greater digital adoption of financial advice in 2023.

“Demand for financial advice continues to grow as the population ages; however, how people wish to consume it is rapidly evolving. We have seen an acceleration in digital adoption across most industries and it makes sense that consumers should be able to access financial advice in a way that suits them,” he says.

“The combination of human and technology, as in today’s hybrid digital advice models, is becoming more understood. Strong evidence out of the UK, as well as our own UK client experience, shows that hybrid adoption leads to greater access and affordability of advice.

“Bringing technology to financial advice is about growing the accessibility of financial advice. Technology removes the barriers of convenience, cost and confidence to make advice more accessible for all.

“Digital advice is perfectly suited to delivering single issue personal advice, for those with simpler or more episodic advice needs. It also clearly preserves the important value proposition of financial planners, who serve the more complex needs of consumers who have the need and budget for a holistic approach to managing their finances.”

Reflecting on how the role of digital advice has changed in the past 12 months, Keary says there is now widespread agreement that technology plays a pivotal role in helping organisations scale advice solutions to their members or policyholders.

“We appreciate there is growing awareness that today’s contemporary technology, which is supported by sophisticated advice algorithms and meets all compliance requirements, delivers confidence to the industry that digital advice is the only realistic way that advice can be scaled,” Keary says.

“We’re encouraged by the Quality of Advice Review and the significant reference to technology as an enabler for scale and how that can bridge the advice access and affordability gap.

“Implementing digital advice solutions is no longer a multi-year, expensive and complex, high-risk program of work, or enterprise-wide digital transformation. With the right provider, implementing digital advice can be faster, cheaper, and less disruptive than most digital projects.”

The post Government can provide “desperately needed reset” of financial advice in 2023 appeared first on AdviserVoice.

Craig Keary

If there’s a theme running through the Quality of Advice Review proposals, it’s that perfection has become the enemy of the good when it comes to financial advice in Australia, according to Ignition Advice.

In its analysis of the Proposals Paper, Ignition said that since the Hayne Royal Commission, advice quality has indeed improved but at great cost, with the industry shrinking and retreating upmarket.

As a result, advice has become more complex, less accessible, and significantly more expensive, placing it out of reach for many who might benefit from it.

Ignition said it backs the Quality of Advice Review proposals and is supportive of the Good Advice model as principles-based, simpler, and more direct.

Combined with proposals including relaxing documentation requirements such as Statements of Advice (SoAs), encouraging institutional participation, broadening the definition of who can provide personal advice, and delivering digital advice, Ignition believes a good advice standard should substantially increase the supply of advice, particularly for simple advice topics, and improve the financial position for a greater number of Australians.

Ignition Advice Asia Pacific CEO Craig Keary says that while Australia has a large advice problem, it is fortunately very resolvable. 

“Ms Levy offers a new model – Good Advice. She is explicit that this is not necessarily the ‘best’ advice in any situation, but advice which is reasonably likely to benefit the client based on their circumstances at the time the advice is given,” Keary says.

“While no set of proposals is perfect, the good advice model offers a realistic path to high quality financial advice being available to all Australians who would benefit from it, in ways that are accessible and affordable.

“In particular, the Proposals Paper offers an approach to broaden how advice is provided via more institutional involvement, and a wider spread of people within institutions delivering simpler advice.  Consumers expect advice from their institution, institutions should be providing it, and ultimately digital advice will make this achievable in a fully compliant, affordable, and accessible way.”

The post Perfection shouldn’t be the enemy of good, accessible financial advice appeared first on AdviserVoice.

Craig Keary

Ignition Advice has been recognised for its digital advice innovation, winning two awards at this year’s Wealth & Finance International FinTech Awards, announced on 1 August 2022.

Based in the UK, Wealth & Finance International is a quarterly publication reporting globally on issues affecting banking, finance, regulation, risk and wealth management.

Ignition won the awards of Best Institutional Digital Advice Engine 2022 (Europe) and Best Financial Services Customer Solutions Provider.

It follows the win last month of Best Digital Advice Platform at the Goodacre UK Systems in the City Fintech Awards 2022 which are the leading endorsement for suppliers of services and systems to the regulated financial services sector in the UK.  In addition, Ignition has been included in the WealthTech100 list for 2022, recognising the world’s most innovative technology solution providers that address the digital transformation challenges and opportunities faced by investment firms, private banks and financial advisors.

Ignition Advice Asia Pacific CEO, Craig Keary, says: “These accolades are a wonderful recognition and acknowledgement of both the hard work of our team, and the strong support of our clients: M&G Wealth and Bank of Ireland,” Keary says.

“Ignition Advice is a global provider of digital advice technology, built for financial institutions seeking to address the broadening advice gap.

“Our bank-grade, omni-channel distribution platform, powering hybrid, adviser-led and D2C personal advice solutions, helps institutions serve at scale an under-serviced market segment that is in most need of financial advice, transforming the economics of advice provision.”

The post Ignition Advice wins two international awards appeared first on AdviserVoice.

Craig Keary

The only way to address Australia’s advice gap and meet the challenges raised by the Quality of Advice Review Issues Paper is through greater use of technology in financial advice, says Craig Keary, CEO APAC from Ignition.

“The Quality of Advice Review Issues Paper raises a number of ways to address the issues of the complexity and cost of financial advice.  These include both incremental changes to advice regulation, and the more substantial possibilities arising from technology.

“The key issue is that incremental measures, which might add 10 per cent to capacity or reduce costs by 10 per cent, will not be anywhere near enough to close the advice gap.

“Other cost initiatives, such as reducing the current regulatory load, are also worthwhile, but is clear that the cost reduction potential of such initiatives will also be incremental in nature: they will not improve accessibility or reduce the cost of advice by 50 per cent or more.

“To deliver that scale of improvement, you need disruptive changes to the supply of advice, which only technology-based initiatives can deliver, and at advice price points which are in-line with consumer expectations and/or the financial capacity of institutions,” he says.

In its submission to Quality of Advice Review Issues Paper, Ignition outlined a number of ways that digital advice, via technology, will play an integral role in the future of financial advice in Australia.

“In the first place, digital fundamentally changes the economics of advice delivery.  Current human advice modes are essentially variable cost models with limited opportunities for economies of scale,” Mr Keary says.

“For example, doubling advice capacity could only be achieved by adding additional resourcing to existing in-person or phone-based advice team, resulting in a substantial increase in costs.

“Digital advice solutions, however, reduce the average cost per piece of advice by changing the cost model from fully variable to a mix of variable and fixed costs. This allows many more customers to be served at the current level of expenditure, and for growth in capacity to occur without costs rising in the same proportion, thereby reducing the cost to serve for each piece of advice.

“Digital advice also allows large financial institutions to efficiently and economically serve new customers who would otherwise be unable to access advice,” he says.

Secondly, Ignition believes that digital advice solves many of the traditional barriers to advice for consumers:

• cost is significantly reduced
• accessibility is significantly increased
• control of the advice process is firmly in the hands of the consumer, who can access personal advice in their own way at a time that suits them.

“For example, members can log on and deal with their super when they have the time and mind space for it, whether that’s on a Saturday, late at night, or early in the morning,” says Mr Keary.

Crucially, digital advice already swims between regulator flags.

“The regulatory framework does not hinder the provision of digital advice and regulatory changes are not required to enable the adoption of digital advice by Australian institutions,” Mr Keary says.

“Digital advice is a new way to access single issue personal advice and is not a different form of advice in itself.  Institutions can be confident that digital advice swims between the flags, and meets all compliance requirements of traditional advice rules such as best interests duty, and appropriateness test.”

He added that digital advice does not result in any dilution of compliance standards.

“Rather, the automation of data gathering, checking and algorithmic development of recommendations, results in consistent and quality advice outcomes for consumers. Data collection is streamlined and automatically checked for outliers, errors, inconsistencies and conflicts. Nothing can slip through the cracks of digital collection.

“Our experience in the UK and Europe show that hybrid digital advice models are currently the dominant institutional preference. We expect to see the same trajectory in Australia, and the Quality of Advice review is a major opportunity to address the role that digital advice can play in the Australian market,” Mr Keary says.

The post Technology the only realistic solution to the Quality of Advice Review’s objectives: Ignition appeared first on AdviserVoice.

Craig Keary

Digitally delivered intra-fund advice is the only realistic route to low-cost, consistent, compliant and robust personal advice at the scale being considered by the government’s Quality of Financial Advice Review, according to a paper from Ignition Advice.

The Going Digital with Intra-Fund Advice blueprint explores the opportunity and benefits of a digital advice solution for intra-fund advice for superannuation trustees to deliver cost effective, accessible advice to members to optimise their retirement outcomes.

Intra-fund advice refers to limited or scaled personal advice in relation to a defined set of topics that a superannuation trustee can provide to a member, with the cost spread across all members as part of standard annual fees.

Craig Keary, CEO Asia Pacific at Ignition, says there is a growing tension between the inexorably growing demand for personal advice, driven by rapidly increasing numbers of older members, and the limited human advice capacity of super funds, typically capped by headcount or spending constraints.

“To date, that tension has often been resolved by the member seeking advice elsewhere, also often resulting in the member leaving the super fund.

“Unsurprisingly, many super funds see that as an unwelcome and sub-optimal outcome after years, perhaps decades, of building the member’s account balance.

“As the number of older, higher-balance members within many super funds now grows rapidly, many exits by such members would be an outcome which undermines the fund’s desire to assist members in their transition to retirement.

“Our blueprint explores how the application of digital advice technology to greatly expand intra-fund advice capacity offers a solution to this problem, making high-quality and affordable financial advice accessible to every member who would benefit from it.”

The blueprint highlights ASIC’s intra-fund provisions that are intended to facilitate simple and one-off advice for super fund members, taking personal circumstances into account on the topics of insurance cover in superannuation, contribution levels, and investment options.

“Digital advice technology is well-suited to a fund’s intra-fund advice offer and can be delivered by a fund in different ways, including member driven, adviser-led and hybrid, where digital is used to leverage human intra-fund advice teams. Our international experience suggests a hybrid model leads to positive member and institutional outcomes.”

The blueprint also outlines the economic benefits of a digital advice solution for super funds, which are comparable to the substantial improvements achieved by funds in digitising other business processes.

“Digital advice fundamentally changes the economics of advice delivery by substantially increasing a fund’s advice capacity in a highly cost-effective manner, while improving member experience. A hybrid digital advice model allows a fund’s human advisers to be redeployed to support members requiring personal assistance or with complex needs, while technology addresses the most common intra-fund advice needs.”

“In essence, the hybrid model creates the capacity for a fund to deliver on underlying member demand for intra-fund advice. This means funds can address the advice gap, serve more members at lower costs and ultimately help more members access the benefits of advice to achieve better retirement outcomes.”

The post Digital intra-fund advice key to better retirement outcomes for Australians appeared first on AdviserVoice.

Craig Keary

While any crystal-ball gazing is risky, there are a number of trends that are set to play an increasingly significant role in the financial services industry in 2022 and beyond, says Craig Keary, CEO Asia Pacific at Ignition.

“After two years of pandemic and the associated lockdowns, many people are looking ahead at 2022 and wondering what to expect.

“There are signs that the year ahead will one of good opportunities and potential for both financial services institutions and financial planners.

“Many of these tailwinds have arisen directly from the COVID-19 pandemic and will shape the industry for many years to come.”

Accelerating digital adoption

Mr Keary says that one of the biggest trends in 2022 will be the accelerating adoption of technology in financial services.

“The COVID-19 pandemic triggered an increase in the take-up of technology by both businesses and individuals, and it is happening even faster than many expected.

“We have already reached the point where doing nothing is no longer an option.  Organisations – whether financial planning firms or large institutions – that fail to implement appropriate digital offerings will struggle to remain relevant.

“If we look at what is happening in the UK, the lessons are very clear.  The UK financial services market is a couple of years ahead of Australia in the digital trajectory and therefore provides a good signpost of where we are heading.

“Organisations are introducing broader and stronger propositions that will allow them to reach new clients, add real value to their existing clients, and consider better propositions for under-served client segments,” he says.

Mr Keary says a key UK trend is the increasing commercial benefits that organisations are seeing when introducing digital advice propositions.

“Our experience in the UK shows organisations who have implemented a digital advice model are experiencing significant reductions in organisational operating overheads and are servicing more customers while reducing advice delivery times.”

Growing demand for financial advice

Mr Keary says the need for financial advice, or guidance, has also accelerated.

“COVID-19 has significantly impacted our society’s mental health and wellbeing, particularly financial wellbeing. In Australia, research suggests that one in four people are under financial stress as a result of COVID.

“Digital advice solutions allow institutions to deliver financial advice at scale and help their customers achieve a more stable and secure financial future.”

Combining human and technological advice

Mr Keary says that since the onset of pandemic, people’s comfort levels with technology and digital interaction has risen dramatically.

“Consumers have shifted to digital across many categories, and the majority intend to continue using technology more post COVID. Digital financial advice has significantly evolved since the days of robo and now advises across insurance, savings and retirement. Whereas robo advice simply told people where to allocate their investment, digital advice tells people whether or not they should even be investing.

“Today, consumers are primed for financial institutions to use technology to do the heavy lifting such as data capture and digital factfinding, allowing financial advisers or branch staff to increase direct support to more clients and customers.

“In my view, technology and humans can work together to do this. The answer for institutions looking to deliver advice at scale isn’t about putting more technology in the hands of advisers, it’s about enabling the end-customer to participate and help with the process. This will be particularly important as declining numbers of advisers attempt to serve the growing demand from consumers.”

Expectations of social responsibility

Mr Keary said the growing expectation that companies will behave in a socially responsible way – including environment and governance considerations – is another trend that will continue to grow in 2022.

“Social responsibility expectations have accelerated during the COVID-19 pandemic, and will continue in 2022.

“The financial services industry is ideally positioned to contribute to meeting this demand.  Not only can it help people invest their money in a way that is socially responsible and deliver affordable digital advice for simple insurance, savings and retirement needs, it can also play a key role in improving people’s wellbeing.

“For example, raising financial literacy levels can help people make better financial decisions and create more prosperous futures.  Financial services companies can use technology to enable greater access to proactive financial education, calculators and financial health-check tools, in a cost-effective and efficient way,” Mr Keary says.

“Perhaps the best news for the industry in 2022 is that there is alignment to make it easier and more straight-forward for financial planners and institutions to offer this support and assistance to Australians.

“For the first time, the government, regulators and industry are all working together to improve the affordability of advice and ease of access.  The Federal Government and ASIC have both recognised the role that technology, via digital advice, can play in helping achieve this, and we anticipate that 2022 will see these ambitions come to fruition,” Mr Keary says.

The post 2022 a year of potential for financial services industry and its customers appeared first on AdviserVoice.