HUB24 and Aberdeen Standard Investments (ASI) have partnered to launch ‘bionic’ advice tools in response to the adviser demand to service a wider range of clients more effectively.
According to HUB24, around 41 per cent of Australians intend to get financial advice but are put off by the perceived barriers, such as price.
ASI says the new tools will allow financial advisers to serve a wider range of clients in a personalised way, via a range of different fee structures to suit individual needs.
Unlike typical robo-advice, the bionic advice tools are fully customisable. It is the input from the client as well as the adviser put together with the outcomes from analytical algorithms and artificial intelligence.
ASI Australia head of retirement and product strategy, Jason Nyilas says that robo-advice implies in the name there is advice within the construct of the solution but the bionic advice tools will be different.
Nyilas says: “Our view is that robo doesn’t have to be advice, in some cases is can be educational, it can be the individual digitising the information for an adviser to work from.”
He says an issue in the industry is the disengagement with investors after the Royal Commission. Nyilas is finding there is an increased number of orphans (those that had advice and no longer want it).
“The idea with our partnership with HUB24 is the digital client engagement tool will effectively re-engage clients with advisers. It will provide a value-added service.”
The tools will reduce the face to face time with an adviser. For example, an investor heading towards retirement can go into the platform and enter their details like assets, expenses, risk profile, retirement goals.
The adviser can then go in and work towards a statement of advice. A typical plan might be cut from 20 hours of work to two hours, with the fees reduced accordingly.
ASI Australia managing director Brett Jollie says: “Improving the efficiency of the advice journey, combined with more informed decision-making and tailored investment solutions, will ultimately result in better outcomes for consumers,” he said.
ASI will provide a range of managed portfolio solutions on HUB24’s platform to help advisers meet client savings accumulation, investment and retirement income needs. It will be available to the advisers who use HUB24.
“Not only does it provide a means for advisers to stay connected with more clients, it will also provide advisers with the tools to support more clients with their long term savings. Baby boomers about to retire need reliable and personalised retirement income solutions.
This will be followed by a solution for employers who want to give employees tools to better manage their finances and access to cost-effective financial advice.
A third offering, which helps advisers to provide customised retirement income solutions, will be made available in early 2021.
ASI Australia head of retirement and product strategy Jason Nyilas says superannuation funds are not ready for the ageing population to draw down their superannuation.
Nyilas says: “Most super funds say they are not ready for this transition to a post retirement world in which they will be required to provide retirement income streams that suit individual needs. We will soon be offering one proven way they can do this.”
ASI has already been running the tools in the United Kingdom and will adapt the tools to the Australian regulatory environment.
Nyilas says: “The good news is we have learnt from our mistakes and we have put in the most suitable journeys and localising it for Australian needs.”