Fintech start-up, Scientiam, has launched a low-cost digital advice solution to help financial advisers deliver scalable advice to Australians who can’t afford, or no longer require, comprehensive, personal advice.
Scientiam is spun out of Sydney-based financial advisory firm Arch Capital, which initially developed the solution for the group’s staff and family members, C & D clients, and the adult children of existing clients, as part of its inter-generational advice proposition.
In announcing the solution, Nigel Baker, Founder of Scientiam and Managing Director of Arch Capital, says Scientiam “…is built by advisers for advisers to solve common problems inside every advice business.”
“Many advisers are grappling with how to profitably service segments of their client base and, beyond that, segments of the market that need advice but are currently missing out because they’re too young, don’t have enough to invest or have relatively simple needs,” he says.
Baker adds that Scientiam circumvents the need for businesses to sell large tails of smaller, unprofitable clients by providing a relatively cheap, easy to implement cloud-based solution. It also enabled advisers to diversify their client base and build a strong pipeline of potential clients.
“As advisers, we want to help people but unfortunately that is getting harder to do due to rising costs. This is a sad reality because some clients have been loyal for 10-20 years but, over time, they no longer fit a firm’s ideal client profile,” he says.
…Scientiam releases advisers to focus on servicing higher fee paying clients with complex needs…
He notes that with this solution “…advisers can stay in touch with clients, deliver a compelling service and an excellent experience but not at a financial or opportunity cost to the business. Scientiam releases advisers to focus on servicing higher fee paying clients with complex needs.”
“If it currently costs around $100,000 per annum to look after 50 clients, Scientiam’s cost to serve is just a few thousand dollars.”
The product is a subscription-based model and is available exclusively through financial advisers. As part of the registration process, all users must be linked to a financial adviser.
As a client progresses in life and their needs change, the system is designed to push them to seek comprehensive, personal advice from their referring adviser, the company says.