THE Digital Wealth Report from Investment Trends examined more than 100 digital wealth apps and services launched by fintech startups and established wealth management institutions.
The study concludes that banking relationships are being redefined as fintechs and banks increasingly compete on knowledge and behavior management and the direct-to-consumer investment space ( D2C) remains “ripe for disruption”.
Although a number of local fintech start-ups have targeted consumers with micro-savings, investing with automated savings from transaction pools, Investment Trends noted that Australian investment product providers were at trolling.
Michael Blomfield, managing director of Investment Trends, said that automating savings behavior is a “powerful proposition” and that “many applications have further improved upon the simple rounding functionality first introduced by acorns in the United States. United States to provide greater flexibility and control, thereby providing low friction.” .
“Yet progress in Australian D2C investment lags behind overseas markets such as the UK and US,” Mr Blomfield said.
“With the exception of a handful of start-ups like Raiz, Stockspot and Clover, Australian investment product manufacturers have been slow to develop their D2C offering, leaving the market open to overseas players.”
Reshaping banking relationships
According to the white paper, many fintech startups have identified personal financial management (PFM) as an underserved area, and in response, many established banks have improved the functionality of their online retail banking portal.
“Local fintech start-ups like MoneyBrillo, Frollo and Pocketbook have introduced solutions that allow Australians to take better control of their spending and savings habits, while incentivizing established retail banks to step up their efforts,” he said. Mr. Blomfield said.
He also highlighted mobile apps such as Up, Revolut and Mozo that offer transaction capabilities via a debit or credit card, helping users monitor their spending and savings in real time.
“Personal financial management is evolving from tracking expenses based on historical data to focusing on providing users with real-time actionable insights and managing behavior,” commented Blomfield.
“Going forward, the open banking initiative will increase competition and encourage consumers to reevaluate their relationship with their primary financial institution. »
Netwealth and MoneyBrilliant ranked among the best providers
Investment Trends also evaluated apps used to provide wealth management services to consumers.
Netwealth won the award as the highest-ranked digital wealth app/service among established wealth management institutions, while MoneyBrilliant topped the list of fintech startups.
The top five highest-ranked digital wealth apps/services among established wealth management institutions are:
1. Network
2. BT Panorama
3. CommBank
4. HUB24
5. ANZ
The five highest-ranked fintech startups are:
1. SilverBrilliant
2. Frollo
3. Pocket book
4. Moneysoft
5. my prosperity
