Otivo digital advice solution launched for CFS FirstChoice members who do not have a financial adviser

16 October 2024 Colonial First State (CFS) has today announced the launch of a personalised digital advice solution for CFS FirstChoice members who do not currently have a financial adviser. 

CFS members will now have access to Otivo’s personalised digital advice in relation to their CFS FirstChoice investment options, contribution strategy and insurance arrangements at a cost of $88 per annum deducted from their super account. The new tool has been designed by Otivo specifically for CFS members and tailored to CFS products. 

Under the arrangement, members who access the service will have 12 months unlimited access to Otivo’s digital advice, after which they will need to renew should they wish to continue accessing the service in subsequent years. 

Commenting on the announcement, Colonial First State Superannuation CEO Kelly Power pointed to CFS research that shows almost two in three Australians under 40 are open to a digital advice solution. 

"We know that Australians who receive advice are far more confident and significantly more positive about their financial position than those who are unable to access advice,” Ms Power said.  

"At CFS we recognise that there is a spectrum of advice needs, from those who need sophisticated personal advice to those who just want to ask a few questions about how to choose the right investment or know what they can be on track for their desired retirement income,” she said. 

"New technology and digital tools will have a role to play but we recognise that digital advice is not for everyone. That’s why our focus is on making sure that advice is more accessible to all of our members, delivered in the right way at the right time."

Ms Power added that there is a significant generational opportunity for new digital tools to demonstrate the value of advice to a larger number of members, particularly younger Australians.   

“Helping more Australians access advice earlier will have the added benefit that they will be more likely to access professional advice later in life as their needs become more complex over time,” she said. 

CFS sought a data driven approach by appointing Otivo to design a solution based on the most common unmet advice needs of members.  

“Our CFS guidance centre team receive thousands of calls a month from members looking for guidance and help about their superannuation. There is a clear demand for more guidance and advice and for interactive tools to allow members to better understand their circumstances and take action as they seek to remain on track with their goals,” Ms Power said. 

“Our partnership with Otivo will give members the option to access personalised digital advice on three topics they often seek the most help with: investment options, contributions and insurance levels.” 

Otivo CEO Paul Feeney said the experienced digital advice provider is committed to making advice more accessible to more Australians. 

“We're thrilled to provide this service as we share the same vision with CFS. While every working Australian has super, most people find it confusing. That's where Otivo steps in. Our easy-to-use advice platform can now guide CFS members in choosing the right investments, maximising contributions including lump sum payments and salary sacrifice to grow their super and selecting the appropriate insurance cover that fits their life stage,” he said.