Two major players in Australia's financial planning space are expanding into the delivery of advice through phone and video conferencing in a bid to meet demand for cost-effective offerings.
Australia and New Zealand Banking Group (ANZ) and Commonwealth Bank of Australia (CBA) are both experiencing strong growth in phone and video-based advice.
ANZ Financial Planning's My Advice phone and video-based capability was now servicing double the amount of clients it had taken on 12 months ago, ANZ Financial Planning head Luke Symonds said.
"There are 25 currently in the team but we're looking to significantly increase that number, based on the fact that we've doubled the amount of customers," Symonds told InvestorDaily.
"The My Advice team is certainly part of our growth plans for 2013."
Video conferencing capabilities were added over the past 18 months and would continue to be rolled out, he said.
"We're really trying to use technology to reach people that are in far places in Australia," he said.
"We have further expansion planned for the video conferencing facility over the next 12 months as well.
"We're also developing other electronic tools to support the engagement of customers [as] part of the growth plans for next year."
ANZ Financial Planning was focused on ensuring My Advice played to the needs of all clients, whether it be for limited advice or for more affluent investors, he said.
"There's been a strong growth in the risk management side but also on the superannuation investment side as well with wealth creation," he said.
ANZ's over-the-phone and video advice aims to facilitate all the needs of clients, regardless of the amount of funds under management.
"The key to the wealth management industry is becoming more client-centric and we're certainly very driven by what's best for the client," Symonds said.
"If you don't play in this space, are you really responding to client needs in an efficient and easy way? This is a client-focused initiative and we'll continue to grow it."
CBA's phone and video-based advice offering, Advice Essentials, has been in operation for 18 months and is made up of 30 advisers.
The initiative predominantly serviced clients of Commonwealth Financial Planning and Financial Wisdom, Colonial First State executive general manager of advice Marianne Perkovic said.
"In the delivery method of advice, we see the Advice Essentials team as our biggest growth component," Perkovic said.
"We're finding that most of the new clients coming into the service are from regional Australia, so we see it as a big opportunity to tap into these areas."
CBA plans to enhance its offering in line with the scaled advice regulations from ASIC, although the industry is still waiting for guidelines around it.
"Once we get clarification, we can really ramp up this service," Perkovic said.
Advice Essentials is currently limited to business hours to engage with clients, although advisers will work to a client's schedule and availability where necessary.
"Once we ramp up this service, the view is that it has the potential to be [operating] 24/7," Perkovic said.
