Challenger leverages digital to go direct to consumer

Mike Taylor

Managing Editor/Publisher, Financial Newswire

31 May 2023

The normalisation of Australian interest rates has seen a financial advisers recommending longer tenor annuities to clients, according to annuities specialist, Challenger.

However, the company is equally focused on a digital, direct to consumer play.

In an investor update filed with the Australian Securities Exchange (ASX), Challenger said that advisers quote levels were up 100% on the prior corresponding in the first half of this year.

Importantly, the investor update showed that annuities with a duration of two or more years were up significantly, alongside lifetime annuities.

At the same time, Challenger pointed to it continuing to build its relationships with financial advisers at the same time as investing in a direct-to-consumer digital channel.

It said that this strategy was a result of the interest rates normalising, therefore making guarantee income more attractive and the ability to delivery seamless digital interactions.

The update said that Challenger was investing in digital capability and creating a new digital channel.