CFS introduces low-cost digital advice solution
Colonial First State (CFS) has unveiled its new tailored digital financial advice offering at just $88 per annum.
The new solution was designed by Otivo specifically for CFS FirstChoice superannuation members who are not currently seeing a financial adviser.
At a cost of $88 per annum deducted from their super account, members will be able to access advice in relation to their super investment options, contribution strategy and insurance arrangements.
Members who utilise the service will have 12 months of unlimited access to the Otivo solution before needing to renew the service for future access.
According to Kelly Power, CFS superannuation chief executive, new digital tools pose a significant opportunity to convey the value of advice to a wide range of members – particularly younger demographics.
“Helping more Australians access advice earlier will have the added benefit that they will be more likely to access professional advice later in life as their needs become more complex over time,” she described.
“Our partnership with Otivo will give members the option to access personalised digital advice on three topics they often seek the most help with: investment options, contributions and insurance levels.”
CFS research also highlights that nearly two in three Australians aged under 40 are open to accessing a digital advice solution.
Power continued: “We know that Australians who receive advice are far more confident and significantly more positive about their financial position than those who are unable to access advice.
“Our CFS guidance centre team receives thousands of calls a month from members looking for guidance and help about their superannuation. There is a clear demand for more guidance and advice and for interactive tools to allow members to better understand their circumstances and take action as they seek to remain on track with their goals.”
Paul Feeney, CEO of Otivo, recognised that despite every working Australian having a retirement income nest egg, many find it difficult to navigate.
He explained: “That’s where Otivo steps in. Our easy-to-use advice platform can now guide CFS members in choosing the right investments, maximising contributions including lump sum payments and salary sacrifice to grow their super, and selecting the appropriate insurance cover that fits their life stage.”
CFS and Otivo’s new offering follows the Quality of Advice Review’s push for super funds to expand the advice services they offer to members, with the ultimate goal of improving the accessibility of advice in Australia.
Minister for Financial Services, Stephen Jones, previously stated he is hopeful of passing the second tranche of Delivering Better Financial Outcomes (DBFO) legislation – which includes super funds offering advice – by next May, with the first tranche already passed in July 2024.
AUTHOR
Jasmine Siljic
Recommended for you
The strategic partnership with Oaktree Capital and AZ NGA is likely to pave the way for overseas players looking to enter the Australian financial advice market, according to experts.
ASIC has cancelled a Sydney AFSL for failing to pay a $64,000 AFCA determination related to inappropriate advice, which then had to be paid by the CSLR.
Increasing revenue per client is a strategic priority for over half of financial advice businesses, a new report has found, with documented processes being a key way to achieving this.
The education provider has encouraged all financial advisers to avoid a “last-minute scramble” in meeting education requirements prior to the 31 December 2025 deadline.
