Decimal Software Limited (“Decimal” or the “Company”) is pleased to announce its enterprise robo-advice platform has surpassed $3 billion in Funds Under Advice (FUA) since going live with several foundation clients in mid 2015.
The results provide the first insights into how enterprise robo advice benefits Australian banks, superannuation and financial services companies.
“The development is significant. We’re the only B2B robo operator in Australia that is delivering a white label solution now. Our technology enables banks and financial institutions to offer an automated financial advice to their customers across multiple topics from investment, insurance, to superannuation and retirement,” said Decimal CEO Nic Pollock.
Decimal’s growth comes from consumer driven personal advice across multiple topics with more than one third of its figures recorded in three months from December 2015 to the end of February 2016.
“The number is large and impressive no doubt, but what excites us and our clients most is we’re seeing real numbers from people using robo-advice in Australia,” Mr Pollock said.
“Today’s announcement means we own a share of this fast emerging and largely untapped market in the financial services sector. That makes us an exciting prospect on many fronts.
“In Australia, 80 per cent of the market still does not receive any financial planning advice, so that’s where the real potential lies with a projected massive spike in Funds Under Advice for robo-advisors. We have demonstrated we can deliver to that.
“Robo-advice is not about displacing human advisors who play an extremely valuable role,” he said. “In the first instance, it’s about offering the customer choice in the way they engage. And then helping the banks and other financial institutions address those customers in a highly scalable and cost efficient manner.”
“While there is still a small amount of reasonable caution in regards to where robo-advice fits in the market, the fact is that industry has embraced the opportunity and started moving forward with it,” Mr Pollock said.
“This milestone indicates that we’re achieving our goal of helping banks and financial institutions retain customers, cross sell products and attract new business.
“What excites us even more is that we’ve achieved these results before we’ve released our targeted solutions to the broader market, so when we do so over the coming months, we’ll see an acceleration in the take-up rate among all financial organisations.”
