MEDIA RELEASE 28 April 2015
Innovation-focused online stockbroker, OpenMarkets, has integrated its broking technology with robo-advice company, Ignition Wealth, confirming the growing trends in FinTech.
Ignition Wealth – launching to the retail market third quarter 2015 – is an online automated investing and advice service targeted to self-directed investors who seek help building and managing an equity portfolio, but don’t want to pay for the high costs associated with traditional financial advice or managed funds.
At the heart of Ignition Wealth’s service is a suite of algorithmic-driven advice and investment tools which recommends, monitors, re-balances and executes a diversified model portfolio across six risk profiles using solely ASX listed ETFs, along with online Statements of Advice.
The recommended trades, once approved by the client, are executed directly from the Ignition Wealth platform and routed to OpenMarkets’ trading infrastructure, with transaction, holdings and cash information looping back in real time.
Ignition Wealth joins a list of FinTech/robo-advice companies that are currently integrating their software to the OpenMarkets platform. Other companies include SMSF administrators, wealth management firms and institutional brokers.
Mr Rick Klink, CEO of OpenMarkets, attributes the growth in robo-advice companies to the high costs associated with traditional advisory channels and the commoditisation of execution services.
“The trends in the financial services industry have seen the ‘unbundling’ of execution and advice. Robo-advice is the next logical step in making advice scalable, affordable and accessible to the broader market,” said Mr Klink.
Mr Andrea Marani, OpenMarkets Chief Operating Officer, said the trends in FinTech are more of an enhancement rather than a threat to the traditional adviser.
“We are seeing strong growth with traditional channels and continue to gain market share in this space. Many of the robo-advice companies that approach us are often financial advisory firms who are looking at ways to cater to the broader market at a lower cost,” said Mr Marani.
Mr Marani adds, “We are very pleased to have been selected by Ignition Wealth as the provider of their execution services.”
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For more information please below About the Ignition Wealth Platform or please contact: Genevieve Wood, OpenMarkets Communications Manager P 03 8199 7702 E firstname.lastname@example.org
About the Ignition Wealth Platform
How it works:
Direct to consumer
- The Ignition Wealth platform is accessed in real time from the client’s desktop, tablet or mobile telephone.
- The customer uses Ignition Wealth’s risk profiling tool to determine their risk level, time frame and investment options.
- Based on the customer’s risk profile the Ignition Wealth platform then creates a diversified portfolio of ETFs across Australia shares, Global, Emerging Markets, Bonds and investments listed on the ASX
- The customer then uses the Ignition Wealth tool to execute the portfolio recommendations that they choose to accept and these are routed to OpenMarkets.
- The customer has real time knowledge of all of the trades. As they are placed they receive a contract note and their holdings and transaction data, including cash balances are reflected on the Ignition Wealth tool which they access in real time from their desktop, tablet or mobile telephone. (The data is looped back to OpenMarkets.)
- Ignition Wealth provides an exceptional capability to monitor the customer’s portfolio. The customer can log into the Ignition Wealth site at any time to view their holding and to monitor tracking against their selected portfolio. The Ignition Wealth tool also automatically analyses the portfolio and recommends rebalancing strategies as required. The customer receives immediate notifications via their smartphone and email alerts and may then make the choose to implement some or all of the recommendations.
- The Ignition Wealth platform generates full online statements of advice at all points to deliver its advice and recommendations to the client creating a fully compliant Australian markets solution.
Business to business
Ignition Wealth offers their platform to business customers as a white label product. As well as supplying the technology as a stand alone product, Ignition Wealth business clients have access to a highly experienced team of financial technology specialists allowing the platform to be uniquely customised for each business customer and providing solutions to integrate the platform into the business’ existing technology and systems.
The technology includes a suite of educational tools that enable intermediaries to build a client centric solution around their unique business offering.
Ignition Wealth has constructed a mathematical or alogorythmic robo tool that scans more than 100 ETFs including BondS ETFs and Index ETFs to determine the appropriate ETFsand weightings for each of the six risk portfolios.