Addressing the delegation in San Francisco last week, respected Australian-born investor and entrepreneur Rich Arnold – an independent director of Financial Simplicity and former director of financial services for the Packer Family’s Consolidated Press Holdings – said the Bay Area’s sizeable innovation community has wisened up to the fintech opportunity.
“There are more than 800 businesses in Silicon Valley now focused solely on financial services and many more innovative startups being launched each day,” Mr Arnold said.
“They are data-driven and know more about your clients than you do. Software is eating the world.”
Asked whether many of these potential disruptors intend to enter the Australian market, Mr Arnold said most are truly global in their focus and that the sizeable pool of Australian superannuation assets make it a natural target.
However, Implemented Portfolios chief executive, corporate development, Santi Burridge said there are a number of key measures that Australian financial advisers can take to ensure that the coming disruption is complimentary to their businesses and does not reduce their professional value.
“Our meetings with some of the world’s leading experts on fintech and the future of financial advice this week has confirmed my long-held view that the old way of delivering advice in Australia is dead and advisers that don’t see this will be disrupted by software that is more focused, capitalised and data-driven,” Mr Burridge told ifa.
“The adviser’s role in the investment piece is fundamentally changing. It is no longer about managing product, it is about managing a system that more deeply engages our clients and allows us to service more of them. The old normal of choosing product then platform then implementing it one by one is over. The new world is all about mass customisation via technology, allowing advisers to build scalable businesses and personalised client experiences.”
