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ProWise [SMART 100, 2015]

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This SMART 100 profile and the information it contains is a duplication of content submitted by the applicant during the entry process. As a function of entry, applicants were required to declare that all details are factually correct, do not infringe on another’s intellectual property and are not unlawful, threatening, defamatory, invasive of privacy, obscene, or otherwise objectionable. Some profiles have been edited for reasons of space and clarity.

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1. THE BEGINNING

This innovation initially came to life when…

Two guys set out to build a powerful analytical tool for companies and realised the same principles could just as easily be applied to individuals, with great personal benefits.

Their early efforts were recognised by some friendly financial advisers as being a massive improvement on the existing approach to retirement planning. And the timing was right too, with substantial disatisfaction in the community following poor advice from financial planners working for the biggest institutions in the country.

Thus was ProWise born – meeting the burning need for objective, customised, affordable, valuable financial advice.

2. WHAT & HOW

The purpose of this innovation is to…

…improve the financial outcomes in retirement for Australians, to help them remain comfortable about the financial security of their retirement in times of economic toil and to do both of these at low cost.

It does this by…

…complex financial modelling that helps people choose an investment strategy that will meet their goals for retirement and at the same time be consistent with their risk tolerance.

ProWise can include all assets of the client, not just superannuation, and all future savings and drawdowns on those assets. It is truly bespoke, comprehensive and financially rigorous.

3. PURPOSE & BENEFITS

This innovation improves on what came before because…

Existing approaches to financial planning are based on highly subjective questions regarding the client’s risk tolerance, focussing entirely on short-term risk i.e. market volatility.

However, what really matters is the retirement income that the client can enjoy, not what happens to markets this year. ProWise simulates all possible investment strategies and chooses those that best meet the client’s retirement goals.

Its various benefits to the customer/end-user include…

…a better retirement and peace of mind. Better retirement could mean a higher retirement income or a longer period before running out of money or even a greater certainty of achieving both.

4. COMPETITIVE LANDSCAPE

In the past, this problem was solved by…

In the past, and still today, planners would use simple financial calculators based on average investment returns that provide no information about the certainty of a client achieving their retirement goals and that would pigeonhole clients into one of five or six investment strategies, none of which were necessarily optimal for that particluar client. They also include very limited inputs.

Its predecessors/competitors include…

As yet, no one is offering a fully optimised financial planning tool that is tailored to each client’s unique financial circumstances. There have been recent announcements from major financial institutions that they intend to build something similar.

5. TARGET MARKET

It is made for…

ProWise will have two versions, ProWise Professional and ProWise Direct.

ProWise Professional is intended to be used by financial planners and accountants during meetings with their clients. It is a client engagement tool that delivers invaluable advice, but due to its somewhat complex nature may need explanation from an expert. However, some financially literate end-users may choose to use this version without an expert present.

ProWise Direct is intended for those who take a DIY approach to retirement planning but who are not overly financially literate. The engine will be the same but the front-end will be quicker and simpler.

It is available for sale through…

,,,our website ProWise.com.au. ProWise Professional will be sold under licence to, for example, a dealer group or accounting firm. The licence will cover a specified number of users. ProWise Direct will be available on a pay-per-use basis or subscription.

Our marketing strategy is to…

We plan to sell ProWise Professional to large independent financial advice groups, major financial institutions and accounting firms most likely as a white-label solution. This will be done through meetings.

Once ProWise Professional is established, we will promote ProWise Direct through SEO, investor publications, SMSF publications and online superannuation platforms. We will also offer it to members of industry funds.

FINE PRINT: This SMART 100 profile and the information it contains is a duplication of content submitted by the applicant during the entry process. As a function of entry, applicants were required to declare that all details are factually correct, do not infringe on another’s intellectual property and are not unlawful, threatening, defamatory, invasive of privacy, obscene, or otherwise objectionable. Some profiles have been edited for reasons of space and clarity.

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