Despite reports that find a significant number of Australians intend to seek financial advice over the next two years, many will not actually go out and get it, says Yellow Brick Road's (YBR's) Mark Bouris.
While a recent report by Investment Trends revealed that the number of Australians who intend to seek financial advice over the next two years increased by 32 per cent, from 1.9 million in 2014 to 2.5 million in 2015, Mr Bouris said this increased consumer interest will not result in new customers actually getting advice.
"If the industry thinks these report findings will actually result in a significant uptick in people seeking financial advice, they're wrong," Mr Bouris said.
"Eighty per cent of Australians don't have a financial plan because they see it as cost-prohibitive and confusing.
"The reality is that the same hurdles that stopped the vast majority of Australians from seeing a financial planner in the past remain today. The only way to service this increase in the desire for advice is to innovate and deliver financial advice in a way that's much more attractive," he said.
Since Australians will not pay a large amount for advice, YBR has responsded by launching the pre-advice tool, Guru, Mr Bouris added.
"The report found that four times as many Australians would prefer to receive lower-cost scaled advice compared to a higher-cost but more comprehensive alternative," he said.
"People don't want the unclear, expensive style of financial planning that's doled out to the wealthy.
"Guru uses robo-technology to make the initial experience visual, transparent and, importantly, it is controlled by the customer not the adviser," Mr Bouris said.
"Guru provides a powerful introduction by breaking down those barriers and gives simple solutions without the usual price tag," he said.
The corporate regulator addressed concerns with the new regime.
The digital solution has launched.
The digital platform for financial advisers and accountants has confirmed the new appointment.
Get the latest news! Subscribe to the ifa bulletin
Get notifications in real time and stay up to date with content that matters to you.