Personal Finance Robo Advice

Robo advice - financial service's competitive edge

The future of financial advice is changing. Relationships between banks, financial institutions and their customers have become digitally diverse. Financial service providers looking to gain a competitive edge through online financial advice apps, or robo advice tools. These tools enable their customers to carry out online banking and investment activities at a time and location of choice. From online banking, share trading, management of superannuation and investment funds through to planning and managing budgets, consumers are more in control than ever on how, when, and where they carry out these activities.

At King & Wood Mallesons we have embraced robo advice digital technology and are up to speed with the latest regulatory and legislative developments in the rapidly evolving online financial advice market.

The areas of robo applications we advise clients on include:

  • The application of traditional “personal advice” laws in a robo advice model
  • Technology development and supply contracts, from inception to disputes
  • Data protection and security issues

We have worked with leading banking and finance organisations and start-ups, helping them to shape bright ideas and pioneering new robo advice technology to enhance their business and differentiate their customer experience.

Our team relish a challenge and welcome the opportunity to work with your business to find pragmatic, innovative solutions to create and implement this next generation of technology.  

The rise of robo advice technology

Anna Bennett, King & Wood Mallesons Solicitor explains what robo advice is and discusses how we've supported some of our clients through the conception, practicalities and legislative processes to unlock fintech opportunities for their business.

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Robo advice ranges from any number of tools. Mostly, they are about asset allocation or they are about investment strategies and developing your investment portfolio. 

As an individual, I can go onto a website at any time of the day or night at a time that suits and get some financial advice. This may involve assessing my appetite to risk, how much money I am willing to lose through to telling me about my financial exposure and telling me how much money I have.

This information helps the robo advisor to scope out an asset portfolio and provide tailored advice on where I can invest my money.

For example, should I be dealing with Australian equities or should I be dealing with Australian property. Essentially, what options are out there for me.

Robo advice is very much about tailoring advice to the individual. It also about having a slick design and presenting information graphics that give the individual insight into their personal financials.

One of the most interesting matters that we are managing at the moment, is for a client who is a robo advisor, to work out what the investment landscape is. 

It is an interesting time because most of our clients are large financial institutions and in contrast this is one man who is taking the time to invest in a new market and develop and idea that will work.

One of the reasons that this is interesting is that there are other robo advisers in the market. They have taken big steps, they have got impressive websites. We are very interested in seeing what the space is for our client here.

Some of the inherent challenges are that the process itself is very expensive, but also how do you get the customer and the business-to-business interface to work in such a way that you have a unique value proposition.

In that way, we are not really providing the client with legal advice, we are providing them with practical and commercial advice that offers a space for them in a crowded fintech world.

King & Wood Mallesons Fintech areas of expertise

Our Fintech team work with clients across the following areas:

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