Tech partnership enables advice transitions

Yasmine Raso

Senior Journalist, Financial Newswire

3 November 2022

A new partnership between fintech start-up, Scientiam, and advice technology firm, DASH Technology Group, has launched a transition service to enable advice businesses to help their clients escape underperforming products.

Available at no cost until the end of the year, the Scientiam Transition Service leverages DASH’s digital Statement of Advice (SoA) tool to allow advice businesses to advise clients looking to exit expensive and poorly-performing funds in favour of newer and more innovative solutions.

Nigel Baker, founder of Scientiam, said clients feel caught in products charging up to two per cent in fees because the personal advice that would help them exit remains unaffordable, according to a recent Stockspot Fat Cats Report.

“Many advice businesses have a long tail of disengaged, inactive clients who are uneconomical to service,” he said.

“Advisers genuinely want to help these people; they don’t want to sell them or hand them to platforms.

“Provided clients are better off moving, the Scientiam Transition Service is a way to help get them a better deal. They can transition to a rich digital advice solution, which includes educational content, modelling tools and access to a range of quality investment options.”

Scientiam’s subscription-based model is available exclusively through financial advisers, with services aiming to improve the financial literacy of clients through tools and trackers and access to low-cost diversified superannuation and investment accounts.

“Some of these underperforming products are a ticking time-bomb for AFSLs and advice businesses,” Baker said.

“As an industry, we collectively need to do more to help clients get out of underperforming legacy products and get a better deal.”