Powered by MOMENTUM MEDIA
subscribe to our newsletter

Technology to strengthen vertical integration in banking

A former CBA executive has warned that robo-advice is likely to become a channel that further expands the vertically-integrated banking system in Australia.

SelfWealth founder and managing director Andrew Ward told Mortgage Business’s sister publication InvestorDaily that the adoption of robo-advice by major institutions is "going to take off" in 2016.

"It could be just a few years until computers are able to give comprehensive financial advice," Mr Ward said.

"But there are obstacles. Offerings like ones from the major banks could end up just pushing people further into the vertically-integrated banking system."

Mr Ward said that because customers are expensive to onboard for most robo-advice offerings, business-to-business (B2B) would be a hotly contested space.

Advertisement
Advertisement

"B2B is going to make or break robo-advisers in 2016. The cloud is becoming ubiquitous and everyone will have great user experience and user interface and great data feeds.

"The two underlying things that will win the race are the value proposition and the distribution network.

"This will mean more deals with institutions and even small-to-medium businesses," he said.

In November Macquarie Group revealed that it will launch a computer-generated advice service that will offer "customised advice" to consumers across several asset classes.

A statement by Macquarie said 'OwnersAdvisory' will operate under a flat fee-for-service model.

PROMOTED CONTENT


It will offer advice across standard asset classes, cash, fixed income, equities, commodities and alternatives – all based on an investor's profile, goals and risk appetite.

[Related: Aussie banks adopt Google technology]

Technology to strengthen vertical integration in banking
mortgagebusiness

Latest News

Reverse mortgage lenders have accessed a small fraction of the potential retiree housing market in Australia, according to Deloitte. ...

Pepper Money has priced its second I-Prime deal for the year, upsizing the figure to $850 million. ...

The LMI provider has announced a new CFO following the resignation of its current CFO, effective 24 September. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.