moneyGPS Insights
18 Digital Advice Myths You Shouldn’t Believe
Myth 1: Digital advice is the same as Robo advice.
Busted: We define digital advice as personal, tailored, single-topic online advice. Robo advice is typically limited to platform investing and does not offer personal advice for super and non-super topics.
Myth 2: Digital advice competes with a traditional advice business.
Busted: Digital advice complements traditional advice because it is designed to service the 90% of the population that cannot afford face-to-face advice or comprehensive advice fees. Digital advice can actually give financial planning practices an advantage.
Myth 3: A computer program can’t replace humans to provide advice.
Busted: The moneyGPS platform is not intended to replace an adviser in all settings. It is an adviser’s best friend, designed to handle simple single-topic advice needs that are too small for an adviser to tackle, such as a $5000 investment or choosing the right investment option in super. For this type of simple advice, a team of financial planners has worked together to develop a series of calculations, scenarios, and logic that ensures moneyGPS’ digital advice is in the best interest of the client.
Myth 4: Digital advice can only provide solutions for basic super or investment topics.
Busted: Technology has evolved, and digital advice platforms can also serve pre and post-retirement planning and income needs. It also caters to complex strategies such as super switching and insurance reviews. In the near future, as solution integration becomes even better, there will be no boundaries regarding how digital advice can be utilised for a designated client cohort unable to afford traditional advice fees.
Myth 5: Digital advice takes a ‘cookie-cutter’ approach to personal advice.
Busted: Algorithms, AI, and sophisticated calculation engines allow for tailored, personal digital advice. These tools, along with clients’ input of their personal financial goals and risk tolerance, enable digital providers to shape their digital advice offering to a client’s unique circumstances while adhering to regulatory guidelines.
Myth 6: Digital advice is only for young investors.
Busted: While digital advice attracts younger investors, research shows that 85% of all adults are interested in online financial tools to help manage their finances*. Investors of all ages can benefit from digital advice’s convenience, efficiency, and affordability.
Myth 7: Digital advice platforms are not secure, and client’s personal financial information is at risk.
Busted: The moneyGPS platforms protect clients’ sensitive information with the toughest level of encryption globally. It uses robust security measures, including authentication protocols and stores data within Australia. The system undergoes annual penetration testing, and all recommendations are implemented. No government-linked sensitive data is stored and clients can request their data to be removed at any time.
Myth 8: Digital advice lacks the human touch.
Busted: moneyGPS offers a hybrid model with human support. Clients can speak with a GPS Coach – specialist ex-advisers & CFPs who offer general advice only (or their adviser) throughout their advice journey.
Myth 9: Producing an SOA in just 15 minutes is impossible.
Busted: Not when technology does all the heavy lifting. The Money Check-Up Report and SOAs are produced in PDF and fully completed. It takes about 10-15 mins to complete the Money Check-Up (a digital fact find) and only a couple more minutes to complete the SOA online. There is no additional editing or finalisation of documents required by an adviser. Watch the video to see how easy it is.
Myth 10: A 10-15 page SOA can’t be compliant, and advisers risk non-compliance.
Busted: Our lawyers, who specialise in financial services, review and approve all of our client documents which are audited annually by external auditors to ensure compliance. We also offer the option of using the moneyGPS AFSL to reduce risk further.
Myth 11: Digital advice doesn’t allow advice practices to include business house views.
Busted: moneyGPS allows customisation of the advice engine rules. For example, how the risk analysis is calculated. It also has the option to include an advice practice’s in-house customised products and services.
Myth 12: Most clients only want face-to-face advice.
Busted: Clients are becoming more tech-savvy and like to have options in how their advice is provided. Clients move in and out of different forms of advice over time, and moneyGPS is there for when digital advice on single strategies is appropriate. Clients can also choose to speak with a GPS Coach (or their adviser) throughout their advice journey.
Myth 13: Digital advice doesn’t allow advice practices to personalise the SOA to their client.
Busted: Digital advice SOAs are designed to reduce advisers’ cost to serve per client. While the moneyGPS SOA templates and rules can be customisable to an advice business, consistent degrees of information per client create cost-efficiency. Usually, a digital advice option is offered to unserviced clients who can’t afford comprehensive or face-to-face advice.
Myth 14: My clients won’t know where to start with digital advice.
Busted: moneyGPS ensures your clients are guided through the process. Our onboarding process includes a launch email introducing clients to the digital advice offering. A webpage is included on an advice practice’s site that explains how to get started, including step-by-step videos. Clients are then guided to complete the Money Check-Up Report – a digital fact find that allows them to set their goals and gives them a list of actions in an easy-to-understand format.
Myth 15: Clients want to sit down with a planner for their financial advice.
Busted: Digital advice serves clients who want the flexibility to receive financial advice online. There will always be some clients who prefer face-to-face advice, but with the rise of working remotely, more people than ever are comfortable with accessing digital services.
Myth 16: Digital advice can’t answer all the typical questions clients have when receiving advice.
Busted: Clients can book a session with a GPS Coach to have the advice explained, answer questions or help with implementation. On completion of the Money Check-Up, clients are offered a free session and can choose to use this at a later date.
Myth 17: Clients won’t be able to answer the questions on the platform.
Busted: The Money Check-Up questionnaire has a 79% completion rate meaning almost 8/10 people who sign up complete the journey. Clients also have the option to save the survey and continue later once they find any outstanding information. Because the Money Check-Up is free, they can return to change their responses and re-run the report as many times as they wish. Where possible, we are always looking to lessen the burden for clients by integrating with 3rd parties such as Open Banking. A live example of this is our SuperRatings API which allows us to retrieve detailed information on the super fund a user is with, rather than asking them to tell us.
Myth 18: The other services offered are just to get product or service commissions.
Busted: Under the moneyGPS revenue share arrangement with subscribing practices, 80% of any commissions are rebated back to the firm, with the remaining 20% donated to GPS supported charities. If practices customise these services to include their own partners on the moneyGPS platform, they retain 100% of the commission.
Have more questions? Check out our FAQs.
* Statistics from: Healthy, Wealthy & Work Wise Survey, Mercer
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accountantsGPS and moneyGPS SaaS products provide affordable, compliant digital advice and SMSF services, to Australians through; Institutions, Accountants, Financial Advisers, Superfunds and Employers.
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Fiduciary is an Australian Fintech and owner of accountantsGPS and moneyGPS—SaaS products that provide affordable, compliant digital advice and SMSF services, to Australians through; Institutions, Accountants, Financial Advisers, Superfunds and Employers.
Designed by finance industry stalwarts George Haramis and Drew Fenton and created by a team of tech heads, it combines all the brilliant parts of the financial services world in a simplified, user-friendly way.
accountantsGPS integrates with BGL’s API extracting data from BGL’s Simple Fund 360 SMSF administration software to produce a digital SMSF Check-Up report.
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