Opportunities for Serving the Mass Affluent Market in Financial Advice
Opportunities for Serving the Mass Affluent Market in Financial Advice
0
Charlie Viola, executive chairman of Viola Private Wealth, recently highlighted a promising opportunity for financial institutions to better serve the mass affluent market.
Despite the recent trends stemming from the royal commission that have seen personnel changes across the financial advisory sector, Viola asserts that there remains a strong clientele base.
The financial advisory business, he notes, benefits from a steady stream of increasingly wealthy individuals, but the challenge lies in effectively serving those with moderate wealth.
The crux of the issue, as Viola sees it, is that most advisors covet high-net-worth clients, typically those with $2 million to $200 million in assets. The commercial realities—compliance, governance, and operating costs—make it tough for financial advisors to cater to clients with assets in the range of $300,000 to $500,000, thereby opening a gap in the market.
Viola suggests that industry super funds and large institutions have a unique opportunity to address the needs of this mass affluent segment effectively. These clients often require guidance on diverse financial planning aspects, including mortgage payments, insurance, and superannuation contributions.
The Australian government's ongoing Delivering Better Financial Outcomes (DBFO) reforms aim to widen the scope of financial advice that super funds and institutions can provide. These reforms, however, have experienced delays, with Financial Services Minister Daniel Mulino prioritising their advancement. Acknowledging the complexities involved, Mulino emphasises the need for careful consideration and consensus-building across the sector.
Among the criticisms of the reforms are concerns from the Financial Advice Association Australia related to the scale and clarity of charges, as well as questions about the qualifications required to deliver this level of advice within a super fund.
Viola stresses the importance of applying adequate resources and regulations to ensure effective service delivery to this market segment. The goal is to offer beneficial advice covering debt reduction, wealth growth, and insurance, ultimately preparing clients for more sophisticated investment opportunities when they are ready.
For those with superannuation between $300,000 and $500,000, Viola acknowledges the benefits of remaining in regulated, professionally managed super funds that offer diverse investments without excessive fees. He believes such institutions are well-positioned to manage these accounts, providing stability and growth opportunities until individual clients aspire for more personalised financial pathways.
Published:Tuesday, 12th Aug 2025 Source: Paige Estritori
As financial planners await forthcoming updates to the Delivering Better Financial Outcomes (DBFO) legislation, many are grappling with significant challenges arising from the first tranche, specifically concerning fee consent requirements. These issues, unfortunately, seem to require legislative amendments as they fall outside the scope of regulatory fixes, amplifying the compliance burden on financial advisers, especially regarding breach reporting. - read more
The Reserve Bank of Australia (RBA) has recently initiated a 0.25% cut to the official cash rate, stirring dialogue among industry leaders about the timing and necessity of potential future cuts. Despite the reduction aligning with broad expectations, there are diverging opinions about further reductions this year. - read more
Charlie Viola, executive chairman of Viola Private Wealth, recently highlighted a promising opportunity for financial institutions to better serve the mass affluent market. Despite the recent trends stemming from the royal commission that have seen personnel changes across the financial advisory sector, Viola asserts that there remains a strong clientele base. The financial advisory business, he notes, benefits from a steady stream of increasingly wealthy individuals, but the challenge lies in effectively serving those with moderate wealth. - read more
Melbourne's property landscape offers a distinctive picture compared to Australia's major cities, with a notably stable market over recent years. PropTrack data shows the city's median dwelling values increased only 19.2% over the past five years, trailing significantly behind the combined capital cities' average rise of 45.5%. - read more
The Financial Advice Association of Australia (FAAA) is expanding its approved specialisations program, which currently includes areas such as aged care, life risk, and the Fellow Chartered Financial Practitioner (FChFP). The organisation is now seeking applications from education and designation providers to broaden the program's scope. New areas of interest include estate planning, retirement, money therapy, self-managed superannuation funds (SMSF), and responsible investing, though additional relevant specialisations are also welcome. - read more
Embarking on the watersport lifestyle can be a thrilling experience, but jet skis, with their cutting-edge features and high-performance capabilities, come with a price tag to match. For many enthusiasts, financing is a practical method to spread out the cost of a jet ski purchase over time, making it more accessible and manageable. - read more
Jet skiing is a thrilling watersport that has become increasingly popular in recent years. If you’re thinking of purchasing a jet ski, you may be wondering how to finance your purchase. There are a few different ways to finance a jet ski, and the best option for you will depend on your individual circumstances. - read more
Nothing quite matches the exhilaration of skimming across the glistening waters of Australia's coastlines on a personal jet ski. The freedom to explore hidden coves, the adrenaline rush of high speeds, and the joy of shared adventures with friends and family—these are just a few thrills that come with jet ski ownership. - read more
Welcome to our comprehensive guide on jetski financing in Australia. If you're dreaming of cutting through the waves on a shiny new jetski, you're not alone. Jetskis have seen a growing popularity in Australia, offering thrilling adventures and unforgettable moments on the water. - read more
Owning a jetski is a thrilling and liberating experience for many Australians. The beautiful coastlines and rivers offer the perfect backdrop for enjoying the freedom and excitement that a jetski provides. - read more
Knowledgebase
Yield: The income return on an investment, such as the interest or dividends received from holding a particular security.
