UniSuper says it would take another 18 advisers to replicate the volumes of Statements of Advice that have been produced by UniSuper’sdigital advice service since it was launched last year.
The $166 billion fund partnered with Ignition Advice to create a new digital advice platform which was rolled out last June, and so far, 25 per cent of the members who commenced a journey with the service have taken up the recommendation.
UniSuper chief advice officer Andrew Gregory tells Professional Planner the other 75 per cent includes members who would rather hold or take more time to make a decision.
“From our side, this is very much a test and learn where we’re wanting to understanding what the experience is like to their members and what their propensity is to make a decision from the recommendation,” Gregory says.
It was part of a plan to increase its advice capabilities by not only relying on its internal adviser channel which only has 71 advisers, but to also improve its relationship with external advisers and to offer a digital advice service to help make sure its 680,000 members have access to advice.
Since launching last year, the digital service has focused on intrafund investment choices with plans to expand into personalised contributions and intrafund insurance. That phase will be followed by an expansion into retirement drawdown? and full insurance.
“Our digital advice proposition is complementary to our current advice model, not competing with it,” Gregory says.
“The strategy is to provide digital advice for the missing middle in the capacity of intrafund scope initially, then we will extend it to more comprehensive journeys. We’ve decided to organise the delivery around journeys as opposed to a black box comprehensive solution.”
Half of the people completing their consultation are doing so outside of standard business hours, during weeknights and weekends. Just over half (53 per cent) of members using the digital advice platform are under 50.
Ahead of his appearance at the Professional Planner Advice Policy Summit on 23-24 February in Canberra, Gregory is hoping there will be further industry consensus on advice reforms.
“We’ve debated the problems in advice for long enough and the greater risk is policy inertia,” Gregory says.
“Reform isn’t about perfection, but we want to see momentum. How as a sector, do we come together to support that and support the government to move forward?”
Minister for Financial Services Daniel Mulino earlier this month said that post-Shield and First Guardian consumer protection reforms have taken priority over the Delivering Better Financial Outcomes reforms.
The DBFO reforms – which included the new class of adviser, nudges and expanded intrafund advice – are what super funds were hoping would help them deliver more advice to members.
Gregory says UniSuper remains committed to advice reform, but that it has also been prepared to improve its own capabilities without relying on law reform.
“We believe in the idea that there is a missing middle in both our fund and also society at large and we’ve got a role to play to provide affordable, accessible advice to that cohort,” Gregory says.
“We’re not waiting for reform to move forward. We’re moving forward within the current regulatory constraints but we’re building optionality that allows us to move very quickly if reforms allow us to do so.”
UniSuper’s adaption of Ignition Advice’s platform has been part of a yet to be completed multi-year journey into expanding its advice capabilities. “It’s one that’s required executive and board sponsorship,” Gregory says.
UniSuper elevated Gregory to the c-suite last year in recognition of advice being a core priority of the fund.
“If we rely on the traditional model, we accept that there are millions of our members that will not receive advice,” Gregory says.
“How we deal into this missing middle is through the complement of the digital advice proposition. It’s that missing middle now starting to access a solution they wouldn’t normally start to access.”
UniSuper chief advice officer Andrew Gregory will be speaking at the Professional Planner Advice Policy Summit on 23-24 February in Canberra. Advisers, practice principals and licensee executives are eligible to attend and can register here.
