SEARCH
US fund manager BlackRock is getting ready to export its robo-advice platform FutureAdvisor around the world – and one Australian executive would like to see it in this country sooner rather than later.
BlackRock acquired FutureAdvisor in August 2015 and rolled out the platform to financial institutions as a business-to-business service.
BlackRock Australia's head of iShares Jon Howie told InvestorDaily he believes Australia needs FutureAdvisor now.
"As always with a large organisation we have to be conscious about how thinly we spread ourselves and so at the moment the focus is on getting the US application of that opportunity right," Mr Howie said.
"I can tell you that internally everyone around the world is putting their hand up and saying, 'We can make this work in our market'."
BlackRock Australia needs the platform immediately, because it will take some time to tweak the offering for the local market, Mr Howie said.
"It has to be moulded, developed and honed for the local landscape. And that will take time."
FutureAdvisor in the US is predominately a business-to-business robo-advice platform used by BlackRock's clients which are large financial institutions.
"We don’t want to build a direct-to-consumer offering as BlackRock in Australia. BlackRock is a relatively small organisation compared to the big [Australian] banks," Mr Howie said.
"In the US, FutureAdvisor does have a very small direct-to-consumer business. But that is not the focus of the offering."
Mr Howie said many people in the financial services industry are underestimating the extent to which robo-advice will "change the game".
"There will be non-traditional entrants into this space that will disrupt the [major players]," he said.
"Many of the traditional financial services businesses won’t be nimble enough to respond because they don’t have the technological DNA."
Read more:
Consolidation would boost super accounts by 79%
Federal budget to delay rate cut, says HSBC
Chinese devaluation would be ‘damaging’
Financial and physical fitness linked, finds study
Government cuts off Trio Capital compensation
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!
The global investing giant has slashed fees on its recently established direct investment platform as competition in the low-cost trading sp...
Digital record-keeping platform Vestwell has teamed with robo-advisory tech provider Bambu in an effort to “provide customers with an even...
Victoria Devine, the founder of finance podcast She’s on the Money, is set to roll out an investing platform, to meet demand from some 160...
Get notifications in real-time for staying up to date with content that matters to you.
Read More
