New Zealand companies will need to start looking at the process of online robo-advice sooner, as the
FMA is expecting substantial submissions early next year, according to a fintech expert.
FinTechNZ general manager James Brown said in that terms of online advice, New Zealand is behind the US, the UK, Canada and Australia. This may change with the Financial Markets Authority’s announcement that the financial sector will not need to wait until the Financial Advisers Act (FAA) is reformed in 2019.
“The announcement comes after 49 submissions, the majority in strong support of online robo-advice, were received by the authority,” Brown said. “The FMA says it would not impose financial limits on robo-advice and has expanded the eligible product list to include personal insurance products, mortgages and investment such as Kiwi Saver.”
Brown said he sees health, wealth and insurance to become the first sectors of choice. The benefits to New Zealand companies include the fact that robo-advisors require less capital, provide quicker responses and offer more consistency in the advice given, he said.
Brown also said that the latest TIN100 report has shown that the tech sector has broken the $10 billion barrier for the first time. It’s now the third largest contributor towards New Zealand’s GDP.
Fintech is the fastest-growing tech sector, with more than 48% growth since last year. And the new government will be keen to talk to the fintech sector about the opportunities and challenges, he said.
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