Global asset manager Aberdeen Standard Investments (ASI) is partnering with HUB24 to empower the investment and superannuation platform with comprehensive digital client engagement tools to deliver significantly improved investment and retirement income solutions for Australians.
Called ‘bionic’ advice because of the way individual client and financial planner input is married with the outcomes from analytical algorithms and artificial intelligence, the new tools will allow financial advisers to serve a wider range of clients in a personalised way, via a range of different fee structures to suit individual needs.
ASI will also provide a range of managed portfolio solutions on HUB24’s platform to help advisers meet client savings accumulation, investment and retirement income needs.
ASI plans to provide HUB24 with the first customised solution to support advisers to better serve clients, followed by a solution for employers who want to give employees tools to better manage their finances and access to cost-effective financial advice. A third offering, which helps advisers to provide customised retirement income solutions, will be made available in early 2021.
Similar “bionic” customer-focussed tools have been trialled, tested and improved in the United Kingdom (UK) by ASI and have been successful because the interaction of technology and human input creates a personalised experience that leads to strong customer engagement.
Using these ‘bionic’ tools enhances efficiency and can cut the amount of time a financial planner needs to service a client significantly, depending on the client’s needs, while maintaining regulatory compliance.
ASI has almost $1trn in assets under management (AUM), employs more than 1000 investment professionals in 50 offices globally and is the largest active manager in the UK and one of the largest in Europe.
“This solution gives the 41% of Australians who intend to get financial advice but are put off by the perceived barriers, an accessible option,” said Jason Entwistle, Director of Strategic Development HUB24. “No product solution to date has been successful in this segment of the market, so we are truly excited to be working with Aberdeen Standard Investments to bring this product to market.”
ASI Australia Managing Director, Brett Jollie said the HUB24 partnership was a first step that would change the face of traditional financial planning and investing in Australia.
“Not only does it provide a means for advisers to stay connected with more clients, it will also provide advisers with the tools to support more clients with their long term savings. Baby boomers about to retire need reliable and personalised retirement income solutions.
“Improving the efficiency of the advice journey, combined with more informed decision-making and tailored investment solutions, will ultimately result in better outcomes for consumers,” he said.
ASI Australia Head of Retirement and Product Strategy, Jason Nyilas said that up until now there was no easily accessible mass customisable solution or sustainable framework to meet the needs of all retiree Australians.
“The good news is that there soon will be a solution on HUB24, followed by other market segments. While the government has launched a retirement income review, we felt it was important to start building retirement income infrastructure now.
“Over the next decade alone the number of Australians over 65 is projected to grow from four to seven million and most, if not all, of these will be drawing down money from their superannuation. However, most super funds say they are not ready for this transition to a post retirement world in which they will be required to provide retirement income streams that suit individual needs. We will soon be offering one proven way they can do this,” Mr Nyilas said.