NAB has become the first of the ‘big four’ banks to announce a digital advice offering, stating that 40,000 selected customers would be given free access to the service via the bank’s internet banking service, with an expectation of providing the service to its 3 million customers in due course.
The service, named NAB Prosper, has been labelled as digital advice with the bank distinguishing it from robo-advice by stating the advice would be personalised and tailored to its customers via a range of specific questions relating to their current financial situation and future goals.
The service would also be distinguished from robo-advice in that it would not provide transaction services nor would it direct people to purchase any product.
Rather the service would provide an up to date view of a customer’s financial position and provide a range of broad advice options based around risk profiling and financial modelling with customers directed to personalised advice if they require it.
The initial phase of the service will provide advice on super and insurance and will be available from early October and will eventually expand to cover debt, cash flow, investments and estate planning in 2016.
NAB executive general manager – wealth advice, Greg Miller, said NAB Prosper was designed to provide advice to the 80 per cent of people who did not have an ongoing relationship with a financial adviser and would complement the face to face advice process.
“The personal relationship between a consumer and an adviser is crucial, and we know this relationship will continue to be a fundamental part of the advice process,” he said.
“Allowing people to see their current financial situation has the ability to trigger a conversation with an adviser. With only one in five Australians currently seeking financial advice, this can only be a good thing for customers and the industry more broadly.
“Advisers benefit from this by being able to capitalise on changing customer segments and deliver targeted, relevant advice, simply and efficiently. It supports growth, strengthens capabilities and will improve efficiencies across our network.”
Miller said the move to provide digital advice was driven by changing consumer needs and behaviours and the advice sector was not immune but would continue to play a role dealing with major and important events and decisions for clients.
“The shape of the advice industry is changing and it will be largely driven by consumers, whose needs are evolving. Different consumers want to access financial advice in different ways, and we need to adapt our offering so consumers can choose when, where and how they deal with us,” he said.
“We’re continuing to look at ways to evolve our business to meet these changing needs. This evolution will continue to include advisers for those life-stage events where a customer wants to sit down and have a face-to-face discussion with their adviser.”
