Has robo-advice stalled on the Australian launchpad?
For a long time so-called “robo-advice” was being touted as the way of the future for Australian financial planning, but new data from Investment Trends shows that it has barely taken off.
The latest Investment Trends Robo-advice Report, released this week, has confirmed the adoption of robo-advice in Australia remains significantly behind established markets like the US.
How far behind? Well according to the Investment trends data, penetration in Australia is just 7% compared to 23% in the US.
Indeed, it seems that Australia might be traversing its own path where robo advice is concerned, with the growth of micro-saving and investing apps such as Raiz.
Investment Trends research director, Recep Peker said Raiz’s popularity highlighted the appeal of micro-savings functionality among Australian investors.
“For other robo-advice providers, brand awareness appears to be an issue, with less than 12% of Australian online investors saying they are aware of providers like Stockspot, Spaceship Voyager, Clover or Sixpark, respectively,” he said.
“Nonetheless, there is significant scope for growth with 38% of Australian online investors considering using robo-advice in the future. The recent launch of solutions like CommSec Pocket and Peker said.
Recommended for you
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
Morningstar has made two business development appointments to drive the growth strategy of its financial advice software, AdviserLogic.
