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Financial advice to take on new structure: Rubik

Financial advice to take on new structure: Rubik

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By tlewis ·
December 02 2015

Financial advice to take on new structure: Rubik

The saturation of the financial advice industry with new technology will result in a sector that's structured entirely different to what it is now, according to Rubik Financial.

Speaking to Adviser Innovation, Cameron O'Sullivan, the head of product of Rubik's wealth division, said technology will change the way advice firms are structured and the type of advice that is provided.

Mr O'Sullivan argued that going forward, there will be three channels of advice integrated into advice firms: "There will be online, there will phone-based and there will be traditional face-to-face planning."

He added: "Most of the advice through all three of those layers will be generated through a 'rapid advice system' that's interactive and [fast]."

The inclusion of web and phone-based advice into advice practices is crucial, Mr O'Sullivan noted, and will result in more people accessing advice.

"We're going to bring this huge ground-swell of people into the advice models that are currently not getting any advice at all."

He said: "There will be just as many planners and eventually we will end up with more clients because growing everyone's net wealth will mean there will be more people who can deal with an adviser."


Mr O'Sullivan said advisers need to capitalise on this trend now, adding that it's imperative that advisers start building the infrastructure needed to offer web and phone-based advice and the capabilities that allow them to transfer clients between the two formats.

"To me, if you build all those layers seamlessly […] all we're really doing is giving clients more flexibility."

Commenting on the rise of automated advice tools, Mr O'Sullivan said the solutions will need to offer more than portfolio construction if they are to truly disrupt the industry.

"In Australia the bulk of advice doesn't start out with a portfolio, it starts out with a strategy," Mr O'Sullivan said.

He continued: "It will be interesting to see the arc [robo-advice] takes in Australia because in [the US] most of planning advice is about planning someone's portfolio, they don't do nearly the level of strategy that we do.

"I don't think those tools will reap through Australia as they have in [the US]. Robo-advice can work but it will need to be in a different format."

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