FOFA to drive online technology demand, says Provisio
Specialist advisory technology firm Provisio has forecast that online financial advice technologies are poised to surge as the advice industry grapples with ways to lower the cost of delivering advice in preparation for the Future of Financial Advice (FOFA) and opt-in regulations.
Provisio director Cameron O'Sullivan claimed profitably servicing C and D clients in a fee-for-service environment would be a priority for platforms and financial advisers this year.
"Advice technology has grown to the point where it's less about gaining competitive advantage and more about not being left behind," he said.
O'Sullivan said new models of delivering financial advice could play an important role in helping retail advisers and platforms remain competitive.
"Superannuation funds have shown that it is possible to provide simple financial advice for many clients at a dramatically lower cost than traditional models," he said.
"The retail advice industry has a huge opportunity if they are willing to blend these new advice models with traditional approaches."
O'Sullivan claimed industry super funds had emerged as genuine competitors to the major platforms. The removal of inbuilt financial adviser fees from platforms, combined with the ability of advisers to charge fees in some industry funds, meant they had become a genuine alternative, he said.
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