Fintech investment platform provider OpenInvest has introduced a new service to the market that will give Australians easy access to both investment portfolios and financial advice.
The launch of OpenWealth is aimed at bridging the advice gap across the nation by ultimately allowing more people to access affordable financial advice.
Specifically, clients will be able to choose a managed portfolio suitable to them and in turn will be able to maintain an ongoing relationship with their wealth manager that can give them the ability to access financial education and advice through the use of the OpenWealth platform.
“I take particular personal satisfaction in enabling experienced wealth management firms to take their investing approach and wisdom out to young Australians, who are currently being bombarded with online advertising telling them that trading is fun and that easy profits are just a few clicks away,” OpenInvest chief executive Andrew Varlamos said.
“We have designed OpenWealth so that firms are not only managing portfolios, but providing valuable financial education as well,” Varlamos said.
Several financial services firms have signed on for the launch of the platform, including Hamilton Wealth Partners.
“We needed a cost-effective way to serve the next generation of clients, those whose wealth isn’t yet at a level that justifies the cost of our traditional bespoke service,” Hamilton Wealth Partners managing partner Will Hamilton said.
“The existing wealth management business model works extremely well for those who have already built up decent levels of investable assets. But, until now, the industry hasn’t really had a cost-effective solution that enables us to help those at much earlier stages of their investing journeys.”
Wentworth Securities is another organisation participating in the introduction of OpenWealth. Its involvement has been motivated by the need to provide financial advice to a greater number of younger Australians.
“Everyone has to start somewhere, including those whose parents may well be experienced and successful long-term investors,” Wentworth Securities founder Thomas Schoenmaker said.
“OpenWealth gives us the means to reach many more clients, delivering our intellectual property at scale, in an informative and engaging way.”
Varlamos recognised the industry support the new offering has already received.
“The reaction from leading wealth management firms has been extremely positive,” he said.
“Now, using OpenWealth, they can serve an entirely new cohort, distributing and being paid for their intellectual property, in a cost-effective way.”