Insignia envisages advisers generating over $1.1m a year

Insignia Financial has outlined its strategy through to 2030 and it is one that canvasses the possibility of financial advisers servicing between 125 and 140 clients each, generating $1.1 million to $1.3 million in revenue per year and at lower cost.

The company has told investors that such objectives can be canvassed in the context of deploying advice technology, process improvement, further opportunities arising out of the quality of advice (QAR) changes and the use of artificial intelligence (AI).

But a key message sent by Insignia chief executive, Scott Hartley is that growth will now be predominantly organic with the company leveraging the history and respect held in the MLC brand.

“We want to shift our focus from building capability through acquisition, unification and simplification to accelerated and sustainable growth through a relentless obsession with our customers,” he said.

“Through MLC – as our go-forward consumer brand – and Shadforth and Bridges – our financial advice brands – we have some of the strongest brands within the wealth and financial advice market, and our strategy will unlock their potential to drive growth,” Hartley said.

He outlined a scenario under which Shadforth and Bridges would be used to provide accessible and scalable advice “increasing efficiency and profitability by harnessing AI to reduce our cost to serve, while freeing up advisers to spend more time with clients”.

With respect to the wrap, Hartley said the firm would be building on MLC Expand’s strengths and using technology (including AI and robotics) to innovate and differentiate in the market to drive superior customer outcomes.

“Our wrap, MLC Expand, is currently the third largest platform in market and is backed by contemporary, agile, proprietary technology, which allows us to respond quickly to adviser and customer demands and market dynamics,” he said. “With MLC Expand we have a significant opportunity to differentiate the platform, start to build presence in market and get it in the hands of more advisers and clients.”

Hartley said Insignia would also be leading with the MLC brand in the Master Trust business including “building a digital direct-to-consumer acquisition channel harnessing and growing MLC’s consumer brand awareness”.

“The depth and breadth of the opportunity in our Master Trust business alongside our investment capabilities, our advice offerings and the potential in the MLC brand, puts us in a truly unique position in market,” he said.

Hartley also described MLC Asset Management as being one of the largest and most awarded commercial multi-managers and, as part of Insignia’s 2030 strategy, it planned MLC AM to become the portfolio constructor of choice.