Lifespan Financial Planning has announced a new solution dedicated to “address the advice gap” and support Australians priced out of receiving personal advice from a professional planner.
The privately owned advice network said its Lifespan Invest solution – made in partnership with Melbourne-based fintech OpenInvest – sees Lifespan manage users’ investment portfolio and grant them access to financial literacy and educational content, such as articles and videos.
“In an ideal world, every Australian would be able to afford a personal financial adviser. However, the reality is that delivering personal advice has become increasingly expensive over recent years, inevitably excluding more and more people,” Lifespan CEO Eugene Ardino said.
“Yes, the government can take steps to reduce much of this cost by streamlining regulatory requirements – and we are extremely supportive of the Quality of Advice Review currently underway. However, the industry needs to also use robust and compliant new technologies to help address the growing advice gap.
“Our advisers are now able to offer an alternative digital solution for those whose circumstances are such that they do not need to go through the more expensive personal advice process. When they do need that service, our advisers will be there for them.”
Lifespan’s new solution comes after Mr Ardino called on the government to launch a campaign aimed at raising financial literacy awareness for younger people during an episode of the ifa Show podcast late last year.
“Try to have more of that within schooling perhaps, so that when people get out there and they have to make financial decisions, and have to engage people to help them to do that, they’re doing it with a bit more awareness,” Mr Ardino said on the episode.
“There’s nothing better than dealing with a client who understands what you’re talking about.”
To coincide with the launch of Lifespan Invest, Mr Ardino has called on the financial advice industry to look to new technologies to help them reach mainstream Australia.
“The press is doing a great job in highlighting the size of the problem – thousands of advisers continue to exit the industry every year, and as a result, it is estimated another 100,000 Australians over the past year were ‘orphaned’, that is, had their adviser relationship terminated,” he said.
“The problem is clear – but equally, there are now digital solutions to this problem, and it’s up to the industry to embrace these new technologies.”
