The advice affordability problem is well documented: The majority of Australians know they need advice, albeit they have simple requirements given their financial circumstances, but only a small percentage of the population can actually afford to pay for the rising cost of personal comprehensive (multi-topic) advice. So, what’s being done to solve this problem?:

• Progress—albeit slowly—is being made on tranche two of the Government’s Delivering Better Financial Outcomes package. With the Minister having announced his retirement and an election looming, this will no doubt result in a further slowing of progress. Regardless, some groups are ploughing ahead with digital, whilst others are waiting for nirvana to get moving. Retail super funds moving ahead of DBFO – Financial Newswire
• Technology companies continue to provide new solutions to assist financial advisers introduce greater efficiencies into their business – but will this reduce the cost of comprehensive advice?
• Of course, digital advice companies continue to offer new products at a fraction of the cost of traditional advice, and at the same time – some also issue that advice via their own AFSL, like moneyGPS.

Why Use Digital Advice?

moneyGPS focus group research clearly showed that people would use digital advice for five key reasons:

• Affordable: They would pay up to $300 (up to $500) per advice topic. They also wouldn’t action all advice topics at once but progress with each over a period of time.
• Convenient: Ability to access digital advice when it suits them and understanding it in their own time – given it is available 24/7.
• Flexible: They can go online or speak to a human support person.
• Targeted: They can talk only about the topics that are important to them, i.e., issue specific.
• Safe: It is compliant and provides that sense of safety.

Focus Group participant 2020: “I’ve never been to a financial adviser, and I don’t know if I’d be ready to spend the $5000+ when you take it to implementation, but one topic at $300, I could dip my toe in”.

In our journey with clients who use the moneyGPS service there is also one more important reason we believe that is underpinning their use of digital: the ability to meet with a human if they chose to.

This critical component of our value proposition offers clients their ‘Safety-Net’ or what we call – their ‘Hybrid Advice’ reason: It ensures that they won’t ‘stuff up’ (as they say to us) and offers them access to a human if they want it, to help them progress through their advice journeys, validate their responses, assist with implementation etc.

Digital Advice Market Progress

Whilst the take-up of digital advice by larger institutions and some segments of the public has yet to reach its potential, we are now working with more accounting firms, financial advice practices – boutiques and national groups, as well as employers. Most if not all Superfunds are now actively reviewing their potential entry into this market, with several already making the call to do so.

The market is moving quickly, and it is catching up with technology advances.

Using Digital Advice Is A ‘No-Brainer’

Apart from the obvious reason of future proofing your respective businesses – given that superfunds and financial institutions are embracing digital, consider the following:

2025 is THE Year of Digital Advice, so make sure you at least find out how a relationship with moneyGPS could help you to grow and future roof your business.

Check out our websites:
moneyGPS – Digital Financial Advice
accountantsGPS – Digital SMSF Check-Up Report

Call us on: 1300 24 24 42

Arrange an online meeting with one of our GPS Coaches to discuss our services and find out which subscription plan is right for your business.

The Team at moneyGPS wish you all the best for 2025.