ANZ's calling card: financial planning

ANZ's no-frills financial planning service offers basic, phone-based financial advice aimed at customers who don't seek traditional in-person planning. The bank's wealth arm has been testing this model for about six months, providing limited guidance and selling simple products such as life insurance and superannuation over the phone.

ANZ originally designed the My Advice program for remote and regional customers who find it hard to access planners, such as miners and farmers. After testing the phone-based service, the bank is considering rolling My Advice out across its broader network to reach more customers who currently do not seek professional planning advice.

The Gillard government's Future of Financial Advice reforms paved the way for limited or scaled advice to be offered, which ANZ is taking advantage of. While much attention was on abolishing commissions, the reforms also allow providers to give more basic advisory services—enabling ANZ to legally offer phone-based, limited advice.

During its six-month testing period, ANZ's phone-based advice has included the sale of basic products such as life insurance and superannuation.

Under the Future of Financial Advice changes, limited or scaled advice can be offered by financial planners, superannuation trustees and, potentially, accountants—expanding which organisations can provide more basic advisory services.

Although ANZ originally targeted remote and regional customers—like miners and farmers—for the My Advice phone service, the bank is looking to expand the program across its entire network, so it is not limited to regional clients.

'Limited' or 'scaled' advice refers to more focused, simpler recommendations rather than full comprehensive financial plans. The government reforms allowed providers to offer this type of advice, which ANZ has been using via phone to help customers access straightforward products and guidance without a full planning engagement.

ANZ's wealth arm has been testing its phone-based, no-frills financial advice for about six months. The testing involves providing basic advice remotely and selling straightforward products such as life insurance and superannuation to customers who might not otherwise seek professional planners.