In a statement, Nod announced it has raised $750,000 in capital as part of a funding round to support the its plans for expansion.
The start-up, which “generates documents in real-time for finance professionals” using artificial intelligence, said it received the backing of a number of “key investors” including Mr Heine, Mr Tucker, Padua Financial Group executive chair Matt Esler, and venture capital firm H2 Ventures.
Mr Heine said compliance-driven document generation had the potential to “save advice firms significant time, effort and expense”, and that Nod may remove a “major pain point” from the advice industry.
“What really excites me about Nod and their ability to rapidly produce advice documents is the AI engine which drives it. The Nod software learns how individual licensees or advice firms like to structure advice documents and the wording and style in which they are written,” Mr Heine said.
“You can quickly and easily complete a client fact find and receive tailored advice almost instantly. This reduces friction, time and inertia from the entire onboarding experience, ultimately improving profitability and creating happy clients who don’t have to wait weeks for advice.”
I am sure with both Matts involved it will be marketed well and we can all expect to receive many ads via Linkedin and these industry publications they sponsor. Whether it delivers or not, I have my doubts. I have seen and heard so many similar promises in the past. I am still trying to create that 7 minute SOA promised and demonstrated by Midwinter many years ago… if only all my clients were exactly the same as the sample case they used with all the pre-filling completed…. Automation of process is one thing, but a 7 – 10 minute SOA surely lacks personalisation so I query how this is driving the industry forward or keeping ASIC happy…
Replacing junior and entry level jobs with software automation to fatten the execs pockets instead of reducing the cost to the adviser or client. Consequence is it will reduce the number of new entrants to the industry at a time when a lot of experienced advisers are looking to leave. Great for our industry and our GDP?
They are just looking for a big insto to buy it and then you’ll be stuck with nothing or like Midwinter where you get the dregs of what the insto doesn’t want.
Software produced by a bunch of executives who don’t understand financial planning
From their comments I think they forgot about the step between fact find and SOA so I doubt the software helps with compliance. When do they research into the existing products, alternative products, like for likes etc etc etc
If it competes with Xplan, COIN and our friends in India being Adviserlogic I say bring it on. If it’s some piece of add on software that does half a job…forget about it.
Maybe it can compete with them on intrafund advice if that continues to exist in the future. I don’t think IRESS or Temenos (Coin) need to be worried as it doesn’t sound like they will cater for comprehensive or complex advice. AdviserLogic and Midwinter are just about keeping their big client happy and really only offer a solution bespoke to that client.
Reinforces the point that there’s more money to be made in compliance of financial planning than financial planning itself.
Hi All, interesting reaction and some fair points however important to point out my underlying “mission” is to help advice firms remove friction from the advice process where it add VALUE but not where it detracts from the client relationship.
The reason I continue to invest time, thought, money is because I believe technology ultimately allows advisers to spend MORE time with their clients and over time reduce the cost to deliver advice and therefor make it more accessible to more Australians who would benefit greatly from seeing an adviser.
I recently heard a great presentation from an adviser (not a fund manager or provider) who stated “if it doesn’t add value, automate it” and I don’t see the downside here.
In relations to the investment it is also important to highlight it is a personal investment not a netwealth one.
Sounds like a waste of money to me. The market is already cluttered with these softwares
Cookie cutter and non compliant
I like the people involved and what they are trying to achieve.
Not sure id go with another tip as still hurting over Vocation !!!
There are so many software solutions out there nowadays. When will people get it, it’s not the software that makes advice efficient, it’s the template!
Yeah and its not software that makes advice compliant either. Sure, it can have checks and balances that the adviser can turn on and off willingly or in error – making it as secure as a client file checklist. The adviser still has to have good ethics, relationship skills and sufficient intellect to create appropriate strategies tailored to each client’s circumstances – AI is not at that level yet.
Gerry I agree in that it sounds like another software platform trying to profit off producing cookie-cutter advice. I also agree they are not luminary!
I’ll keep my Paraplanner and administration staff in a job, $750,000 could employ a heap of unemployed kids who are keen for a start, put the money into developing the next generation of advisers, not getting rid of decent people. Heine is really losing the plot, will be him by himself in a room soon having a relationship with his lap top, Netwealth used to be really good, now they are just another listed company.
It’s a bug bear of mine when all our “industry luminaries” join together to make money out of the compliance burden. Pretty much shows there is (and has been no) no effort to discuss the existing compliance framework with the regulator. Instead we just fine faster ways to generate the same pile of rubbish that consumers don’t understand and don’t read.
Not sure I would describe either of these name in the headline as a luminary. Sorry.