Limited advice will account for 80 per cent of all new statements of advice (SOAs) in the next five years, based on internal chatter in the banks and institutions.

According to Wayne Wilson, managing director of Rubik Financial, the banks are preparing to deliver advice en masse, with a general consensus that scaled advice will be the major growth driver in the future.

“If the consensus view is right and in five years 80 per cent of all SOAs will be limited plans, then advisers need a first-rate system to let them deliver financial plans simply and quickly,” he said.

This month Rubik Financial, which owns front-end software provider Coin and scaled advice solution Provisio, released its latest version of Coin. The group’s institutional clients include Commonwealth Bank, Westpac, ANZ, Macquarie Bank and NAB Wealth-owned licensee JB Were.

Coin 4.2 allows financial planners to create an SOA in six minutes.

The new functionality seamlessly meets Future of Financial Advice requirements, including enhanced fee disclosure.

“Our aim was to provide advisers with a comprehensive tool kit for both comprehensive and scaled advice enquiries,” Wilson said.

“There are key differences between holistic and scaled advice. With scaled advice, there’s no need for what-if calculators but a need for optimisers. Comprehensive modeling tools require advisers to input multiple pieces of information and run multiple strategies to find the best outcome, however that takes a long time and isn’t an economical or viable solution for scaled advice.”

Wilson said institutions were ramping up efforts to find new revenue streams now that much of the FoFA reforms had been bedded down and equity market conditions were improving.

“The larger groups want to grow revenues, provide advice to more people, deliver SOAs and take as much labour out of the process,” he said. “There will be many new developments in this space.”

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