You have 0 free articles left this month.
Register for a free account to access unlimited free content.
Powered by MOMENTUM MEDIA
accountants daily logo

Macquarie tips fintech to boost accounting revenue

Technology

With the next wave of fintech focused on investment advice services, accountants are in a prime position to further expand services and gain a competitive edge against financial advice firms, according to Macquarie.

By Miranda Brownlee 11 minute read

Speaking to Accountants Daily, Macquarie chief investment officer John O’Connell said that with accounting software eliminating many of the mundane or number-crunching tasks, and developments in the fintech space now focused on investment, the services offered by financial advice firms are under greater threat.

“A lot of the mundane tasks done by accountants were reduced many years ago [by the accounting software companies],” said Mr O’Connell.

“The new crop of services and fintech services – you’re really talking about investment services – accounting firms haven’t provided those investment services in the past; so for accounting firms, it actually opens up a potential improvement or a wider array of services.”

==
==

Mr O’Connell said that in the past accountants tended to avoid investment services as they didn’t have enough time to monitor markets.

“[Now accountants have] really solid engines that are actually able to help them understand what’s happening in markets and help them make those decisions,” he said.

“That is a fantastic marriage made in heaven for an accounting firm, and that’s the area that will expand their focus, in terms of advisory firms.”

While Mr O’Connell said he doesn’t believe accounting firms will completely bypass financial advisers, he said there may be an incremental shift away from them.

“I think you’ll find there will be more competition between those two channels in terms of being able to provide those two services for the clients,” he said.

“For example, if you use the limited licensing regime to do what I would term the ‘upstream advice’ – in other words the structuring, setting up the SMSF, the administration of it all – and then you use the robo-engine from the downstream day-to-day advice, then you’ve basically got the two licences working hand in hand.”

 

Miranda Brownlee

Miranda Brownlee

AUTHOR

Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.

Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.

You can email Miranda on:miranda.brownlee@momentummedia.com.au
You are not authorised to post comments.

Comments will undergo moderation before they get published.

accountants daily logo Newsletter

Receive breaking news directly to your inbox each day.

SUBSCRIBE NOW