Robo-Advice Decision Will Improve Kiwis’ Financial Fortunes
Robo-advice decision will improve Kiwis’ financial fortunes
Kiwi Wealth has welcomed the Financial Markets Authority’s decision to grant exemptions for robo-advice, saying the move will unshackle technology advances to benefit more New Zealanders financially.
Kiwi Wealth helped initiate the change when it formally applied to the FMA for a robo-advice exemption in March this year while developing its sector-leading Future You platform for KiwiSaver members.
“We’ve long seen the potential for technology to deliver better personalised financial advice to Kiwis,” said Ramesh Naran, Senior Manager, Digital and Innovation at Kiwi Wealth.
“We developed Future You as a solution to better engage people in financial planning for retirement and help them make the right decisions at the right times to achieve their goals.
“But the problem was we were hamstrung by the law in terms of the functionality and personalised advice we were allowed to build into Future You.
“With this decision by the FMA, we can go through the application process and turn Future You into the powerful, personalised tool we’ve always wanted it to be. It’s already on its way to becoming the platform that’ll set the industry standard.”
Mr Naran said the FMA’s approach recognises the ability of technology to improve financial understanding and outcomes for New Zealanders.
“And it’s also what our members told us they wanted from Future You – the ability to get advice specific to them and the power to act on it.
“Given the sheer number of KiwiSaver members, technology is the optimal way to engage, educate and empower them to take action when they need to. That’s what Future You was developed for.
“We see it as the democratisation of professional financial advice that everyone can benefit from.”
The Kiwi Wealth KiwiSaver Scheme and Future You won the Best Overall KiwiSaver Member Experience category at last month’s 2017 Workplace Savings Awards.
Kiwi Wealth is now developing robo-advice technology to offer customers investment advice and guidance beyond retirement planning.
“Providing personalised advice through digital channels will enable us to help customers with a range of investment needs and goals outside of retirement,” said Mr Naran.
“The industry is on the cusp of transforming how Kiwis interact with their investments. There will be huge advances as a result, and that’s great news for Kiwis seeking a better financial future.”