The Financial Services Council (FSC) has established the Digital Advice Expert Group (DAEG) to help define this form of guidance and develop policy to promote its uptake among Australian consumers.
The FSC stated the new group, which grew out of plans last year to form a digital advice association, will contribute its expertise to the council’s policy development to support the passage of reform through parliament.
According to the FSC’s website, the DAEG would also work with industry bodies, associations and providers to promote the adoption of digital advice and encourage financial institutions to include it as part of their customer service options, and put forward industry standards for its delivery.
FSC chief executive Blake Briggs said digital advice offered a new way for consumers to access affordable financial guidance and it would be accessed by high numbers of Australians.
“Independent research has shown that almost 4 million Australians say they would be open to low-cost digital advice solutions and the digital advice sector can provide services at scale to consumers who cannot typically afford advice,” Briggs said.
“The massive opportunity to deliver financial advice digitally is confronted by common challenges posed by a costly and burdensome regulatory framework.”
DAEG founding member and moneyGPS chief executive George Haramis added: “It is now crystal clear that the market has accepted digital advice as a mainstream offering, critical to the well-being of working Australians.
“As a founding member, moneyGPS welcomes the opportunity to be working with the FSC, given our common objective is to progress the use of digital advice services across the financial services and superannuation industry and lead the policy discussion as the technology-led proposition evolves over time.”
Fellow founding member and Ignition Advice global head of strategy and corporate services Andrew Baker said: “Digital advice technology is the only way to match the huge gap between the demand and supply of advice and will improve the quality, accessibility and affordability of financial advice for the millions of Australians who want and need it.
“The Digital Advice Expert Group has a pivotal role in contributing to the formation of policy to support digital advice adoption and we look forward to working closely with the FSC to help shape the exciting future for digital advice in Australia.”
