Online transactional site launched for term deposits
Australian Moneymarket has launched what it claims is Australia’s only online term deposit transactional shop, prompted by the ongoing flight into cash by investors.
A private Brisbane-based company, Australian Moneymarket operates www.moneymarket.com.au under the Australian Financial Services licence of Brisbane-based fund manager DDH Graham.
There are currently 12 product providers represented on the site, ranging from major banks — including Commonwealth Bank, ANZ, Macquarie Bank, Bank of Queensland, and Adelaide Bank — to building societies and credit unions.
Managing director Stephen Jewell predicts the site’s product provider representation will grow to 14 over the next few weeks and will reach around 25 providers by early next year.
Funds under management (FUM) is currently at $100 million, and is projected to reach $300 million within 12 months, he said.
The site is currently only being marketed to financial planners and stock brokers, but it is designed to be capable of handling direct retail as well.
“Our two main markets currently are financial planners and stock brokers as well as mid-sized corporates, which often aren’t big enough to have their own staff on the financial investment side.”
The site currently has eight dealer groups and stock broking firms represented as customers, and each of these “have multiple users” of the site by way of planners and brokers.
A key benefit for advisers lies in the efficiencies provided by automating the process of purchasing term deposits on behalf of clients, Jewell said.
“There’s a lot of administration involved in an adviser trying to put, for example, 12 different clients individually into a term deposit.
“By contrast, our site puts all the rates in one spot, and then it allows the adviser to transact on the customers behalf at three clicks of a button.”
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
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.
