AUSTRALIAN FINTECH INNOVATOR IGNITION WEALTH LAUNCHES DIGITAL FINANCIAL ADVICE LOW TOUCH, LOW COST, HIGH TECH

Innovative Australian fintech company Ignition Wealth is now operating a highly advanced, fully digital financial advice service. The disruptive low touch, low cost, high tech model is set to transform the investment advice market as we know it, making quality advice easily accessible to everyone and thereby assisting everyday Australians to reach their financial goals.

“Automation, scalability, lowering of cost, and improved client experience are service improvements that are urgently needed across all aspects of the Australian wealth Industry.” Mark Fordree, CEO, Ignition Wealth.

The Ignition Wealth platform is accessible via smartphones, tablets and online; every aspect of financial advice including risk profiling, asset allocation, trades and customer identification is executed online. While the option of additional personal support and advice is available, it is entirely possible for an Ignition Wealth member to create, fund and manage their investment account from their handheld device. Rebalances, trades and statements are all executed and delivered digitally. By virtue of being online Ignition Wealth provides a 24 hour service, allowing customers to monitor and manage their accounts at a time that is most convenient for them. Ignition Wealth anticipates rapid market adoption of the digital financial advice model.

“I believe the Ignition Wealth platform has the potential to provide millions of Australian investors with affordable advice. We will likely move rapidly to a norm where algorithms will take care of everyday investments, with customers grazing for human advice only for specific event ­triggered needs such as tax or estate planning.”
Mark Fordree, CEO, Ignition Wealth.

The traditional labour intensive financial advice model is necessarily expensive as individual advisers provide a one on one service to their clients; the average investor incurs thousands of dollars of advice fees as well as sacrificing a percentage of their fund to Funds Under Management (FUM) fees. Given the high cost of advice, this option is only viable for investors with a minimum of $250,000 to invest. Ignition Wealth’s high tech, low touch, low cost system makes investment advice accessible to everyone; an Ignition Wealth membership makes investment possible for as little as $198 per year in fees, while the minimum fund to open an investment account is just $5000.

“The incumbent AU$2 trillion Australian wealth management industry currently leaves over 70 percent of Australian investors completely unadvised. Rather than addressing the market gap, traditional advisors and banks continue to lift the hurdle, setting the minimum investment point at an ever­ rising level. In 2015 that hurdle requires an individual customer to have more than AU$250,000 of investable assets to engage a traditional advisor. This disruption model allows our customers to build a highly diversified global portfolio at an extremely affordable cost and from a much lower entry point.”.
Mark Fordree, CEO, Ignition Wealth.

While the delivery of the advice is entirely automatic, the generation of the model portfolios is executed under the guidance of the Ignition Wealth investment board, a world class team of investment experts. The Ignition Wealth investment board is additionally supported by one of Australia’s most respected investment houses, Lonsec Research. The Ignition Wealth offering is built around portfolios of ASX listed ETFs, across six risk profiles. Operating under our own Australian Financial Services Licence Ignition Wealth is not owned by a financial institution ensuring that the financial advice offered will always be 100 percent independent and unbiased.

As part of the Ignition Wealth service we facilitate our members in the creation of their own online Cash Management Account (CMA) and an online brokerage account. Both accounts are set up and held in the member’s name. Ignition Wealth has already announced partnerships with Macquarie Bank for the cash management accounts and OpenMarkets for the online brokerage accounts.

Ignition Wealth’s technology team is highly proficient in delivering bank grade technical solutions and tools to large scale financial organisations. For the past six years the Ignition Wealth technology team has provided tools to leading financial institutions; our tools are embedded into the sites of several household name industry funds. Using our expertise and experience we have built a bank grade platform, technology and tools specifically to provide digital financial advice. The Ignition Wealth technology is incredibly user friendly and easy to use, making the sometimes daunting prospect of investing as simple as possible.

Ignition Wealth’s direct to consumer product is available via ignitionwealth.com and the Ignition Wealth app which is a free download on the iTunes and Google Play app stores. Interested consumers may complete their risk profile and receive their recommended portfolio entirely free of charge; the monthly membership fee only commences when the customer funds their account. The website and app are currently being augmented to include a wealth of financial information, providing education and support entirely free of charge.

The Ignition Wealth tools and technology are also available as a white label option for financial services businesses. By using our technology our business partners have the opportunity to offer digital financial advice to their customers in addition to their traditional services. This area of the business is already experiencing rapid growth, with several partnerships due to be announced in the new year.

“Far from posing a threat to traditional financial advice businesses our hybrid model allows financial services businesses to massively expand their potential customer base, greatly increasing their total business opportunity.”.
Mark Fordree, CEO, Ignition Wealth.