They will be able to claim bragging rights as the first major bank to provide an online service for personalised, tailored advice on superannuation and insurance. The advice will expand into debt management, cash flow, investments and estate planning in 2016.
NAB Prosper assesses customers? needs by asking specific questions about their financial situation (income, age, risk profile) and retirement goals. The app provides information such as how much money they might need in retirement to continue their current lifestyle and spending patterns.
Because of legal restrictions, the advice is still classed as “general financial advice”, but in fact the advice is changes as customers give more input.
NAB?s general manager of wealth digital and direct services, Anne Bennett, said it is more personalised than the “robo advice” currently sweeping across U.S. banks and was not designed merely to push NAB?s wealth management products.
NAB Prosper aims to reach out to those 80% of Australians who don?t already have any financial adviser helping them and do not need or want complex financial advice.
As always, there is still the option of speaking with a NAB financial adviser in person or over the phone. Indeed, the app is designed to bring clients to a financial adviser with a defined set of goals that match their risk appetite, improving cost-effectiveness for NAB and its customers.
NAB Prosper will initially be offered to 40,000 customers, but within a year that will increase to 400,000, and eventually all 3 million online banking customers will have access to the app.
Danny Gilligan, the managing director of Westpac-backed venture capital firm Reinventure, has commented that the financial planning sector could one day be made extinct by technology. Ms Bennett disagrees, saying, “There will always be a place for advisers and face-to-face conversations.”