Ian McKenna, founder of AdviserSoftware.com and the Financial Technology Research Centre, comments on M&G’s appointment of Ignition Wealth to develop a new hybrid advice proposition:
“This morning‘s announcement is significant for Ignition Wealth, M&G and the wider marketplace. For an Australian Fintech to win such a prestigious UK customer is clearly a great way for them to enter the market.
Equally for M&G complementing their existing traditional restricted advice team with a low-cost hybrid automated proposition is a great way to support hundreds of thousands of former potential customers who will be approaching retirement and need help but have a level of assets that will make full blown traditional advice uneconomic.
“In a wider market context this shows that whilst it has taken time for automated decumulation advice to be developed it is now becoming an increasingly competitive sector. We expect to see a number of other organisations currently in stealth mode go public before the end of the year. This is becoming a highly competitive sector and will make financial advice affordable for millions more people over the next couple of years.”