12/02/2018 industry evolution insights smsf disruption
TRANSCRIPT
12/02/2018
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Industry Evolution Insights SMSF Disruption
SMSF Disruption –Regulatory change and technological evolution
Presented by: Neil Sparks
National Manager SMSF, BT Financial Group
Disruption, change and the
super industry
Rapid growth,disruption and continuous change0
1
Technologicalchange
03
Demographicchanges
04
Pricepressure
05
Rethink our business strategies
06
Regularlegislative change
02
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Superannuation members are considering an SMSF
Reductionin new SMSF establishments
Under50 Years old
20
%20
%48
%
Source: Investment Trends 2016 SMSF Investor Report and ATO ‘2017 Quarterly Establishments Demographic’ table (link)
2013
RG243SMSF Auditor registration
2016
RG104 Licensing
2017
Introduction of Transfer Balance Accounts
2018
EventBased reporting -TBAR/TBEN/TSB
Who’s next? What’s next?
Regulatory oversight
“We always overestimate the change that will occurin the next two years and underestimate the change that will occur in the next ten. Don’t let yourself be lulled into inaction”.
Bill Gates, The Road Ahead
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SOURCE: https://home.kpmg.com/content/dam/kpmg/au/pdf/2017/australian-fintech-landscape.pdf
Fintech
BlockchainDistributed Ledger Technology
SOURCE: http://plugandplaytechcenter.com/2018/01/05/fintech-blockchain-trends-2018/
11%
11%
9%36%
6%
4%
4%7%
3%12%
1%6%
Today
In 3 years
BlockchainInvestment by industry
Which technologies areyou making substantial investments in?
Hospitality & Leisure
Financial Services
Automotive
Technology,Media & Telecomm
Healthcare
Retail & Consumer
Blockchain Process
01 02 03 04
User requests a transaction
Request is transferred to peer-to-peer “nodes”
Nodes verify the transaction with a computer algorithm
The winning node groups transactions
Transaction is completed and ledger is updated
This is added to the blockchain, the register of all previous verified blocks
This forms a newtime stamped block of transactions
07 06 05
SOURCE: http://plugandplaytechcenter.com/2018/01/05/fintech-blockchain-trends-2018/
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Local Blockchain Pioneers
Australian Securities Exchange
(ASX)
GOV PASS
DIGITAL ID
Australian Government Digital Transformation
Agency
Australia Post
CHESS replacement
2018
Partnered with DIGITAL ASSETS
Why Blockchain?
Improved identity managementand data security
Accurate, reduced operational costs
Faster, settlement and transaction reporting
Lower Cost- fewer intermediaries
Consolidation
Improvedservice
Decentralised
Greaterinvestment choicei.e. cryptocurrency, direct assets etc.
MORE
New Productopportunities
Artificial Intelligence – AI
Artificial intelligence , machine learning and deep learning have created ever larger disruptions.
1950’s 1960’s 1970’s 1980’s 1990’s 2000’s 2010’s
DEEP LEARNING
Deep learning breakthroughs drive
AI boom
MACHINE LEARNING
Machine learningbegins to flourish
ARTIFICIAL INTELLIGENCE
Early artificial intelligencestirs excitement
SOURCE: https://blogs.nvidia.com/blog/2016/07/29/whats-difference-artificial-intelligence-machine-learning-deep-learning-ai/
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Artificial Intelligence – AI
Machine based learningAnalysing your spending data lookingfor patterns and actionable insights
Behavioral EconomicsLearns from your habits and makes recommendations to change behaviour
Conversation EngineTo understand context of enquiryand respond appropriately
Algorithm Investing
Product DevelopmentPersonal budgeting
Machine Learning
Deep Learning
Natural Language Processing (NLP)
Think, Alexa, Siri,or Google home
Deliver improved client outcomes and new product development
AI andProductivity
Possible benefits to business, complianceand customer
Not a threat (e.g. Centaur)
“Human and AI, working as a team”
AI/ML
Employees adding more value leveraging AI:
Automation of processes, that older tech can’t accomplish.
Identifying trends in historical data
AI giving insight to improve human decision making (strategy)
ROI – more than financial, think increased customer and staff satisfaction.
PaperlessAI supportedcompliance
Data driven insights,
Client outcome focused
Automatetransactionreconciliation
24x7x365
SMSF management
“Your Fund, Your Way”
Aggregate data
Enhanced investment management
Revolutionize SMSF
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“In the same way that e-mail did much more than replace letters sent in stamped envelopes, the internet of value would be a platform for myriad as-yet-unthought-of innovations. Just as nobody forecast social networks, blogging or Netflix in the 1990s, the absence for now of any tangible applications other than bitcoin for the blockchain merely points to humankind’s deficient imagination”
SOURCE: https://www.economist.com/news/special-report/21650295-or-it-next-big-thing
Disclaimer
BT Portfolio Services Ltd ABN 73 095 055 208 AFSL 233715 (BTPS) operates Panorama Investments. Westpac Financial Services Ltd ABN 20 000 241 127 AFSL 233716 (WFSL) is the responsible entity and issuer of interests in BT Managed Portfolios. Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714 (Westpac) is the issuer of the BT Cash Management Account (BT CMA). Together, these products are referred to as the Panorama products. A Product Disclosure Statement or other disclosure document (PDS) for the Panorama products can be obtained by contacting BT on 1300 784 207 or by visiting www.btpanorama.com.au. You should obtain and consider the relevant PDS before deciding whether to acquire, continue to hold or dispose of interests in the Panorama products. In addition, BTPS is the provider of the Panorama SMSF Establishment Service and the Panorama SMSF Administration Service. The Guide and Terms and Conditions for these services are available by contacting BTPS.
BTPS and WFSL are subsidiaries of Westpac. Apart from any interest investors may have in Westpac term deposits, Westpac securities or the BT CMA acquired through the Panorama products, an investment in, or acquired using, the Panorama products is not an investment in, deposit with or any other liability of Westpac or any other company in the Westpac Group. These investments are subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested. Westpac and its related entities do not stand behind or otherwise guarantee the capital value or investment performance of any investments in, or acquired through, the Panorama products.
The information provided is general in nature only and does not take into account your personal objectives, financial situation or needs, so its appropriateness will need to be considered having regard to your personal objectives, financial situation and needs.
How can Big Data, Artificial Intelligence and Machine Learning be applied to SMSFs
Ron Lesh
Managing Director, BGL Corporate Solutions Pty Ltd
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This session…
Big Data
Artificial Intelligence
Machine Learning
What is Big Data ?
“Extremely large data sets that may be analysed computationally to reveal patterns, trends, and associations, especially relating to human behaviour and interactions”
Much IT investment is going towards managing and maintaining big data
ie: BGL holds over 250 million transactions in the cloud, what can we do with them ?
What is SMSF Big Data ?
Transactions
Members
demographics, income, account balances, insurance
Investments
Processing
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What do we know ?
Accumulation v’s Pension accounts
Accumulation / Pensions status ie minimum / maximum met ?
Contribution caps
Member balancesie < $1m, $1m -> $1.6m, over $1.6m?
Insurance
Processing status
What do we know ?
Investments
Investment balances
Insurance status
Lodgement status
How can we use what we know ?
The BIG question…
You have these incredible databases but what are you doing with them ?
Its should be all about client service…
How can you use this data to better service your SMSF clients ?
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What is Artificial Intelligence ?
“Artificial Intelligence is the science of engineering and making intelligent machines”
John McCarthy, Computer Scientist, the Father of AI, 1956
What is Artificial Intelligence ?
A video from Peter Diamandis
Founder X Prize, Executive Chairman Singularity University, Author
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Artificial Intelligence and SMSFs
But maybe think about it like this…
AI is: bringing a lot of stuff we already know together, to predict the future…
Machine earning and SMSFs
Machine Learning is a subset of AI
“Machine Learning is a field of study that gives computers the ability to learn without being explicitly programmed“
Arthur Samuel, Computer Scientist, first coined the term Machine Learning in 1959
What can Artificial Intelligence and Machine Learning do for SMSFs ?
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What can Artificial Intelligence and Machine Learning do for SMSFs ?
Zero touch transaction matching
Predictive complianceSISS/Tax Act / Companies Act ?
Asset return / assessment / prediction
Automated SOAs
Automated / Exception Auditing
Thank you
What does disruption mean to you - technology or client needs?
Andrew Stewart
Head of Advised Distribution – CommSec Adviser Services
12/02/2018
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The information in this presentation has been prepared without taking account of your objectives, financial situation or needs. Because of this, you should consider its appropriateness, having regard to your objectives, financial situation and needs and, if necessary, seek appropriate professional advice. If a Product Disclosure Statement is available in relation to a particular financial product, you should obtain and consider that Product Disclosure Statement before making any decisions about whether to acquire the financial product. Any securities or prices used in the examples in this presentation are for illustrative purposes only and should not be considered as a recommendation to buy, sell or hold. Past performance is not indicative of future performance. Australian Investment Exchange Limited (AUSIEX) and its related entities do not accept any liability for losses relating to this material. This material does not represent advice and must not be relied upon as advice.
This presentation is directed and available to and for the benefit of Australian residents only. CommSec Adviser Services (CAS) is a brand of Commonwealth Bank of Australia (CBA or the Bank) ABN 48 123 123 124 AFSL and Australian credit licence 234945. Share trading is a service provided by Australian Investment Exchange Ltd (AUSIEX or Participant) ABN 71 076 515 930 AFSL 241400, a participant of the ASX Group and Chi-X Australia. Portfolio Service is offered by AUSIEX (under the CAS brand) and Colonial First State Custom Solutions (CFSCS), which is the registered business name of Avanteos Investments Limited (AIL) ABN 20 096 259 979 AFSL 245531. AUSIEX and AIL are wholly owned but non-guaranteed subsidiaries of the of the Bank. The Accelerator Cash Account is a deposit product issued by CBA and administered by AUSIEX under the CAS brand. The Managed Investments Account is an investor directed portfolio service operated by CFSCS. Lending products under the CAS brand are provided by CBA. Investment loans are administered by its wholly owned but non-guaranteed subsidiary Commonwealth Securities Limited (CommSec) ABN 60 067 254 399 AFSL 238814, a participant of the ASX Group and Chi-X Australia.
Disclaimer
What is Disruption?
How do we think of disruption?
New entrants to financial advice
Consolidation and increased regulatory focus on vertically integratedmodels
Platform substitutes,low cost and alternative options
International MultinationalCorporations and non-traditional new entrants
Non-traditional new entrants to retail direct insurance products
Shifts to ETFs, passive funds, ISF internalisation and online automation
Retention through digitalguidance and advice/retirement solutions ISF Govt.
lobbying for default awards and pensions
Enhanced digital SMSF offerings
FundsInsurancePlatformsAdvice
Independent Financial
Adviser (IFA)
New platform providers to SMB Employers for HR / Payroll & accelerated by Single Touch Payroll
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Another way of thinking about disruption?
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Disruption to consider in your business?
1. Sources of advice – collaboration important?
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2. What services are you providing your clients?
3. How are you communicating with your clients?
4. What opportunities exist to better meet the needs of your SMSF clients?
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Thank you
Visit us at stand 52.
Improving Service and Quality
Through AI
Kurt GroeneveldChief Technology Officer
Artificial Intelligence
“I have exposure to the very cutting edge AI,
and I think people should be really concerned
about it …” - Elon Musk
“I keep sounding the alarm
bell, but until people see
robots going down the street
killing people, they don't
know how to react”
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Artificial Intelligence
“We cannot predict what we might achieve when human intelligence is magnified by the tools that AI may provide,
but the eradication of war, disease and poverty would be high on anyone’s list. Success in creating AI would be
the biggest event in human history.…”
- Dr Stephen Hawking PhD
“… Unfortunately it might also
be the last.”
Artificial Intelligence
AI Market will be $5.05 billion
by 2020, at a CAGR of 53.65%
- IBM
Artificial Intelligence
• Natural language
• insights into volumes of data,
• tag and classify visual content
• understand tones and emotions
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Artificial Intelligence
• Big Data
• Machine Learning
• Neural Networks
• Computer Vision
• Robotics
• Expert Systems
• Speech Processing
• Natural Language Processing
What is AI?
Artificial Intelligence
Artificial Intelligence
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Artificial Intelligence
Artificial Intelligence
Artificial Intelligence
“It's about augmenting what you and I do so
we can do what we're supposed to, our best.”
- Ginni Rometty, IBM CEO
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Disclaimer
The content of this presentation has been prepared to provide you with general information
only. It is not intended to take the place of professional advice and you should not take action
on specific issues in reliance on this information. In preparing this information, we did not
take into account the investment objectives, financial situation or particular needs of any
particular person. Before making an investment decision, you need to consider (with or
without the assistance of an adviser) whether this information is appropriate to your needs,
objectives and circumstances. You should obtain a copy of the relevant Product Disclosure
Statement (PDS) before making a decision to invest in any financial product.
Any advice in this presentation is provided by SMSF Administration Solutions Pty Ltd,
ACN 097 695 988, AFSL No. 291195 which is part of the AMP group of companies.
Thank you!
Ripping apart the traditional accounting process
Olivia Long
Chief Executive Officer, SuperGuardian
Overview
Working with SMSFs
Working with volume
Working with technology
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Working with SMSFs
What if, by reconciling 200 investments at a business level (through Class) you could complete 80% of the annual work required for 2,000 funds?
Working with volume
- Richness of data- Small changes to business capabilities can have a great impact- Value can be created through automation at a business level - Value creation can be delineated to functions, rather than
funds, to create significant efficiencies- The greater the number of funds, the smaller the ratio of
unique investments across the entire business
Working with technology
- Scalability with business level processing- Data feeds- Bulk reporting and report packs- Consoles to support business level processes- TBAR lodgement- Custom reporting- Partner integration
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What now?
- Reorganise the way information is processed and value is created in your organisation
- Exploit business level processing, custom reports and TBAR functions
- Look beyond compliance and use your wealth of data to serve clients in ways they will actually value
- Continue to invest in new capabilities, not old business models
- Connect
The information in this presentation is factual information, and not financial advice. The information is objectively ascertainable information, and is not tailored to your personal circumstances. You should consider obtaining financial advice before making a decision in relation to this information.