Yellow Brick Road (YBR) will offer a free robo-advice service to entry level financial planning clients but will charge for its initial implementation and the ongoing provision of services and advice.
The robo-advice service, dubbed GURU, will provide YBR clients with an online tool that allows them to vary factors such as income, saving, investments, loans and insurances and their impact on end goals to produce a Roadmap at no cost to the user.
However YBR stated that GURU and the Roadmaps would be "supported throughout by a Yellow Brick Road money coach" and that any implementation of the self-generated financial plan would cost $990 in the first year and $660 for every subsequent year.
Yellow Brick Road executive chairman Mark Bouris said financial planning was “ripe for disruption” and Australians were “sick and tired of an industry that cannot provide them simple, affordable financial check-ups and guidance, regardless of income and assets”.
“Knowledge is power and under the traditional model your financial summary is concealed by the adviser until money – often a hefty fee – is exchanged. Our model gives you that information upfront free of all fees or any ongoing charges,” he said.
“We’re also challenging the prohibitive costs of implementation. The option to action your Roadmap with a Yellow Brick Road money coach has been done at a killer price point,” Bouris said.
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