New register of financial advice platforms launches

Adviser Ratings has launched a “Smart Tools” register of direct-to-consumer digital financial planning solutions, or “robo-advisers”, in a bid to help consumers navigate the offerings available from the emerging sector. 

Highlighting the different platforms available that assist with budgeting, financial advice, investing, superannuation and post-retirement services, the register outlines who owns the 36 platforms available, and what they do. 

Tools included in the register include ASIC’s MoneySmart platform, Moneysoft, Credit Simple, BRICKX and Your Financial Wellness. 

Speaking of the launch, Adviser Ratings CEO Wealth Mark Hoven commented: “There’s no question that the traditional financial advice industry today has an image problem, compounded by the findings from the 2018 [financial services] royal commission.

“The fact that only 14 per cent of Australians receive advice despite the large majority needing assistance with their finances demonstrates a huge unmet opportunity.

“We believe the digital financial planning world can start to bridge this gap and have launched a review register of 36 robo-advisers to provide consumers more transparency about this emerging world of finance solutions.”

The Adviser Ratings CEO added that the wealth advice sector had traditionally attracted more affluent customers and that some consumers may be hesitant to engage the financial planning sector, for example, should they have concerns around trust, affordability, fears of being judged or embarrassed, and a lack of solutions offered for simple advice needs. 

“Because these digital tools are breaking down holistic advice into its component parts and delivered through the streamlined anonymity of an online world, they are helping to overcome previous advice roadblocks and providing accessibility to professional financial help for more Australians,” Mr Hoven said. 

However, the CEO added that robo-advisers should be used in a “hybrid model of interdependency”, and that the platforms present benefits for advisers if sympathetically incorporated into their business design.

[Related: Government launches program to boost ‘financial capability’]