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Robo-advice key to growing client base

Robo-advice key to growing client base

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By tlewis ·
February 05 2016

Robo-advice key to growing client base

By incorporating a robo-advice tool into their practice, advisers will be able to grow their client base by serving a new cohort of clients like millennials, says clover.com.au.

Robo-advice key to growing client base
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Harry Chemay, chief executive of robo-advice platform clover.com.au, said that by incorporating a robo-advice tool into their practice, advisers can service more clients without it being "cost prohibitive".

"There's no real way that younger Australians and people with less money can get high-quality advice, particularly from independently minded advisers, because [the advisers] can't provide a solution at a cost that is bearable," Mr Chemay told Adviser Innovation.

Mr Chemay pointed out that robo-advice removes the cost associated with the human element of providing advice. For advisers who offer an automated tool, it allows them to grow their client base, but at a fraction of the cost.

"Younger Australians feel that they have something available to them, and by the same token, advisers feel that there is a way to build a nursery for younger clients who will become full advice clients at some point in time," he said.

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Moreover, Mr Chemay believes that ultimately, robo-advice and human advice will "blend together" to form a "hybrid" advice model.

Looking out over the next six to 12 months, he argued that a greater number of robo-advice platforms will be operating within the Australian marketplace.

"This time next year there will be a number of start-ups, like us, out there in the marketplace but there will very likely also be a few offerings from the large institutions like the big banks."

He said the take-up of robo-advice by institutions will place additional pressure on advisers to adopt some kind of automated advice tool.

"The question will be: do [advisers] build [their] own or do [they] outsource it and look for some sort of white label solution?"

The ifa Excellence Awards are back in 2021 and nominations are now open!

This prestigious accolade recognises exceptional professionals within the financial advice industry, shining a light on the outstanding achievements from the nation's best and brightest. If this sounds like you or someone you know, then nominate today for the ifa Excellence Awards 2021! ifa.com.au/excellence-awards

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