How to get advice to middle Australia

The re-emergence of digital advice coupled with hybrid models will help deliver advice to middle Australia, a cohort who does not require a face-to-face advice but often remains excluded due to high costs, according to Link Advice.

Duncan McPherson, General Manager, Link Advice, said that one of the key things for his business is the re-emergence of digital advice and the importance of the advice support.

“The financial planning model needs to be able to provide more advice to more people. The key thing for us is how do we get advice to middle Australia to those everyday Australians who do not have complex advice needs or complex situations,” he said.

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“We think that digital has a role to play because those people often do not have probably the situation that demands face to face advice.

“We are investing our time around telephone advice, so telephone and digital, the hybrid advice which would allow us to provide the service to that everyday Australian cohort who probably do not need to have face to face to advice for a number of different reasons.”

Asked about the advice opportunity and market consolidation, McPherson said that one of such sectors were superannuation funds.

“We have certainly seen the merger of superannuation funds, which we provide the advice to the members and we see that obviously that trend is continuing and we see it directly having a beneficial impact on their model and the advice opportunity,” he said.

“A lot of the clients sit in corporate and industry superannuation funds. So, we will see a lot of movement in that in the first six months of 2022 and the relationship between those funds and advisers is becoming really healthy,” he said.

According to McPherson, finding new clients along with operational efficiency and cost reductions were one of the key challenges for advisers.

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Yep here comes Robo Sales to the rescue.
Frydenberg & Hume over regulated to death real advice so they can allow the banks to re-enter via Robo Sales.
This is utter crap and will end in more tears.
Here’s a novel idea, reduce the BS over regulation and people can see & afford Real Advisers.
Robo sales has not worked in any significant or successful way in anywhere in the world. Let alone in Australia’s massive over regulated environment. So the only way it has a hope is almost complete carve outs from BS Regs.
These future carve outs must be stopped.
Along with carve outs for Intra Fund sales.

Prediction: Hume and Frydenberg will parachute out of politics and into cushy jobs fintech jobs with the institutions or digital advice providers, just like Bernie Ripoll. They are building their nests right now by creating the problem they will swoop in to solve.

Agree: I have just nominated to run as a candidate for The Liberal Democrats in my local electorate at the next Federal elections. I have no hope of winning but I will be using it as a platform to do everything I can to make people aware of the feather nesting of these two and the corruption they have presided over in ASIC.

Middle Australia needs access to advisers. Almost everyone will get value from a personal adviser, except that the regulators have priced out that value with over regulation. Allow advisers to do what the do and the benefit will follow; trouble is we're not allowed to do what we do without the on cost of doing what we're told we need to do as well.

I'd argue that everyday Australians DO have quite complex advice needs. Every household is different; health status, job patterns, part time work, family status, priorities & goals, risk preferences etc.

To take an average amount of wealth when you retire and deliver a lifestyle that is above the age pension for an unknown timescale (your lifespan) and through unknown market conditions is really hard.

Robo-advice generally gets very low uptake. From my experience this is because:

- People don't know what scope of advice they need. So they don't know which robo-advice tools will work for them. Scoping is an important part of an adviser's job.
- Laymen don't understand all the jargon of the inputs. If they make a mistake they know the advice will be wrong.
- They don't understand the assumptions or the outputs

As such, they certainly aren't confident to make decisions based on what an online calculator tells them. They aren't sure the computer 'gets them' or genuinely has their individual best interests at heart.

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