Sullivan said that current robo-advice solutions in the market should not be trusted because they cannot give an accurate portrayal of a client’s risk profile and fail to take into account “the bigger picture” of a clients’ assets or provide relevant referrals.
“It’s not holistic, it doesn’t look at the clients’ whole circumstances,” she said.
“It doesn’t look at mortgage or insurance, so it’s not personal tailored advice.”
SMSFCheck – an Australian self-managed superannuation fund (SMSF) start-up for reviewing investment strategies – examines a fund’s investment objectives, risk profile and asset allocation.
According to Sullivan, the fintech delivers a ‘tailor-made’ report to users based on their SMSF investment strategy, providing recommendations for asset protection and insurance cover.
“One of the things that we tried to do was introduce a product that had structure but was easily accessible,” Sullivan said.
“We needed something better than a cookie-cutter solution … so we’ve started with a niche market with SMSFs, they have a legal requirement to run their investments properly. We wanted to build a product that was accessible [and] independent.”
Sullivan said that SMSFCheck’s relationship with equity investment platform CapitalPitch and fintech community organisation, Afiniation, led the start-up to realise immediate growth opportunities.
“We attended the Afiniation showcase in September as the timing was perfect to launch our new service and seek opportunities for partnerships,” Sullivan said.
“It’s tough going up against the big guys without the capital and resources, so it’s great to have a support network to make it a little easier.”
A structured approach to advice is key for meeting the needs of investors today, particularly as robo-advice blurs the line between what can be considered as personal or general advice, according to Sullivan.
“Providing advice is often an expensive undertaking because of all the regulatory requirements … and robo advice is walking a fine line between personal and general advice,” Sullivan said.
“We are allowing the investor to be the driver. We believe the industry is being challenged with its traditional methods of advice delivery by consumers and the opportunity to respond to changing needs is greater than ever.”
