In a statement, the bank said the new platform, NAB Prosper, will be rolled out to 40,000 customers in October and be accessible through their online banking accounts.
It will ask customers specific questions relating to their current financial situation and future goals and provide them with a “tailored, personalised assessment” with the option to seek further advice if they feel it necessary, the statement said.
The new platform will make NAB the first major bank to provide personalised, tailored financial advice through internet banking, the bank said.
“There’s a real enthusiasm running through our business and NAB Prosper is just one example of how we are continually looking to provide innovative, market-leading products that align our banking with wealth customers,” said NAB executive general manager for wealth advice, Greg Miller.
“The shape of the advice industry is changing and it will be largely driven by customers whose needs are evolving. Different consumers want to access financial advice in different ways, and we need to adapt our offering so consumers can choose when, where and how they deal with us.”
NAB Prosper will initially provide personalised advice on super and insurance, with plans to expand into debt, cash flow, investments and estate planning in future releases, the bank said.
“Allowing people to see their current financial situation has the ability to trigger a conversation with an adviser. With only one in five Australians currently seeking financial advice, this can only be a good thing for customers and the industry more broadly,” Mr Miller said.
“Advisers benefit from this by being able to capitalise on changing customer segments and deliver targeted, relevant advice, simply and efficiently. It supports growth, strengthens capabilities and will improve efficiencies across our network.”
Ill attempt to break down the banking code for u…..”Advisers benefit (sorry I mean us)from this by being able to capitalise on changing customer segments (we’ve made it so hard to give advice due to internal processes, compliance requirements and regulatory hoops we’ve made our own market) and deliver targeted (sorry I mean inflow into group product), relevant advice (sorry insert cookie cutter), simply and efficiently. It supports growth (ours), strengthens capabilities (remove pesky planners) and will improve efficiencies across our network (reduce our costs push profits up).”
Look at the Plan for Life figures and it is obvious why the banks want to go down this path. BT Super for Life had over $1.4BN net flows in 12 months. Some platforms supported solely by advisers had negative net flows in the same period! However advisers shouldn’t be disheartened. Look at the net flows for the direct pension products. BT Super for life got just $4m in the same 12 months! Retirement is one time where robo advice, direct advise, whatever you want to call it doesn’t cut it. There is a place for both models and the two should/could actually work in synch.
All the big product companies are gradually taking advisers out of the picture, and switching to direct ditribution methods that allow them to bypass the best interests duty.
Reducing adviser payments and increasing clawback for insurance is one example. This is another. Hopefully the consumer associations wake up to what’s happening before it’s too late.
Spin it any way you like, but this is a direct advice play. You may like to dress this up as a lead funnel for advisers but we know you are testing this so that you can sideline face to face advice in the future.
Sounds like a calculator to me.