Market Economics managing director Stephen Koukoulas, a former Citi chief economist and adviser to the prime minister, says Australia is entering an economic environment advantageous to financial services providers.
“Mining, which was the boom industry for so long, is slowing down,” Mr Koukoulas told InvestorDaily, “but financial services has recovered nicely from the global financial crisis and the future looks good for the industry.
“With an ageing population and a compulsory superannuation system, Australians are increasingly going to be needing some form of professional advice; even self-managed super funds need external advisers,” he said. “Increasingly, you must have advice and someone managing your money.”
Mr Koukoulas said a low interest rate environment – which he anticipates continuing for “some time” – lends itself to professional financial services as “people need to think about low-risk ways of maximising their returns and an adviser can help with that”.
The economist also threw his support behind the Johnson Report objective to turn Australia into a global financial services hub and enhance the exportability of the financial services sector, as proposed by Treasurer Chris Bowen in a recent speech to the National Press Club.
“Australia does have a wonderful reputation globally for high quality and sophisticated financial services and financial products, especially the innovation in the treasury area of financial markets, but retail banking as well,” Mr Koukoulas said.
“These services could be increasingly exported; there is a growing demand in Asia in particular, where, for example, mortgage markets are emerging and Australia has considerable expertise.”
Stephen Koukoulas will be speaking at the upcoming Wraps, Platforms & Masterfunds conference in the Hunter Valley. For more information go to www.masterfundsconference.com.au.
