Following an earlier soft launch of a digital advice service for its members, Colonial First State (CFS) has unveiled further detail on the “data-driven approach” to designing the solution.
The company has stressed at every stage that this personalised digital advice tool is specifically designed for CFS FirstChoice members who do not currently have a financial adviser.
The cost of $88 per annum will be deducted from members’ super account, giving them 12 months of unlimited access to Otivo’s personalised digital advice in relation to their CFS FirstChoice investment options, contribution strategy and insurance arrangements.
CFS Superannuation CEO Kelly Power noted that the company’s research has found almost two-thirds of Australians under 40 are open to a digital advice solution.
“We know that Australians who receive advice are far more confident and significantly more positive about their financial position than those who are unable to access advice,” Power said.
“At CFS, we recognise that there is a spectrum of advice needs, from those who need sophisticated personal advice to those who just want to ask a few questions about how to choose the right investment or know what they can be on track for their desired retirement income.
“New technology and digital tools will have a role to play but we recognise that digital advice is not for everyone. That’s why our focus is on making sure that advice is more accessible to all of our members, delivered in the right way at the right time.”
According to Power, providing younger Australians with access to advice earlier will lead to a higher chance they access professional advice as their needs become “more complex over time”.
She added that the partnership with Otivo aimed to meet the most common unmet advice needs of members.
“Our CFS guidance centre team receive thousands of calls a month from members looking for guidance and help about their superannuation. There is a clear demand for more guidance and advice and for interactive tools to allow members to better understand their circumstances and take action as they seek to remain on track with their goals,” Power said.
“Our partnership with Otivo will give members the option to access personalised digital advice on three topics they often seek the most help with: investment options, contributions and insurance levels.”
Otivo CEO Paul Feeney said it is committed to helping more Australians access advice.
“We’re thrilled to provide this service as we share the same vision with CFS. While every working Australian has super, most people find it confusing. That’s where Otivo steps in,” Feeney said.
“Our easy-to-use advice platform can now guide CFS members in choosing the right investments, maximising contributions including lump-sum payments and salary sacrifice to grow their super and selecting the appropriate insurance cover that fits their life stage.”
