Otivo’s goal to provide mass affordable advice

Digital advice platform Otivo’s Paul Feeney has detailed how its partnership with Colonial First State (CFS) is expanding the accessibility of advice in Australia.

Last week, CFS announced the official launch of its new tailored digital financial advice offering. The 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 can now 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.

Kelly Power, CFS superannuation chief executive, noted the team at its CFS guidance centre receives thousands of calls per month from members looking for guidance regarding their super.

“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,” she commented.

VIEW ALL

View all

Money Management spoke with Paul Feeney, CEO of Otivo, to further explore how the new solution is improving the accessibility of digital advice in Australia.

“With super funds, the vast majority of members, probably 80–90 per cent, aren’t in a situation to pay for a traditional advice channel. Super funds were telling us: ‘We’re getting people calling up asking about investment options and we can’t help them. We have to tell them to go to an adviser’,” Feeney explained.

“Now with Otivo, all members inside CFS can get advice around: Are you in the right investment option? Can you make extra contributions? If so, how much should you make, given your personal situation? Can you make any lump sum contributions that you can claim a tax deduction for as well? Then we also do a complete insurance needs analysis.

“It really is tailored around the unique situation, so we’re no longer having to talk to cohorts – it’s exactly for that individual.”

Research from Investment Trends shows that the average ongoing fees charged per client currently stand at $5,500 per annum in 2024, up from $3,450 in 2016.

With the majority of Australians unable to afford this fee, Otivo’s low-cost digital solution through CFS gives members the option to access advice if and when they need it, Feeney added.

“At that [$88 per annum] price point, advice is available to anyone who wants it. Not all Australians want it and that’s fair enough. Our goal at Otivo is just to make sure it’s available for everyone.

“We are really targeting the 80 per cent of households who just want some assurance. They want that financial confidence that they’re doing the right thing. Everyone just wants one question answered when it comes to money: ‘What do I need to do next?’ This is really for those people.”

Otivo’s partnership with CFS could be the first of many, he hinted, with the digital advice platform currently in talks with multiple super funds and industry players.

“We’re in discussion with several others at the moment. We are wanting to partner with large financial services firms who have large client bases or large membership that will benefit from having that personal advice,” he said.

Moreover, Otivo is looking at how it can harness artificial intelligence to further expand its offerings.

Feeney described: “We’ll have a few more interesting things using all the new technology, large language models, artificial intelligence and everything else, not to generate advice, but to help with the interaction and consumption of the advice – so watch this space.”