AMP unveils goals-based engine


By Sarah Kendell

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AMP has launched a new goals-based modelling engine that provides clients with a detailed picture of the impact different advice strategies will have on their long-term financial circumstances.

The new engine, which will be rolled out to practices under goals-based advice group AMP Advice starting this week, uses stochastic modelling developed by actuarial firm Milliman to project the likelihood of clients achieving their financial goals through different strategies.

The modelling factored in economic and market conditions to illustrate in real time how different cash-flow, debt, wealth protection and wealth management tactics would affect a client’s portfolio, AMP said.

AMP group executive of wealth solutions and chief customer officer Paul Sainsbury said the launch was the latest step in the group’s push towards goals-based advice, as well as a “landmark moment” for the advice sector overall.

“The engine is a culmination of a multi-year investment program to build AMP’s advice capability of the future,” Sainsbury said.

“We’ve custom built the engine around goals because we know that when delivered well, goals-based advice transforms the lives of our customers.”

He added the engine formed an integral part of AMP’s overall goals-based advice offering, Goals 360, which aimed to provide a “contemporary advice experience for advisers and their customers”.

“Underpinned by the latest in financial modelling capability, the engine demonstrates to customers in a visual and engaging way how the choices they make today impact the ability to achieve their goals over time,” he said.

“For advisers, it supports richer conversations and helps build stronger relationships with their clients.

“The engine also creates a more efficient process for advisers – reducing their cost to serve and allowing for ease of compliance.”

The launch follows the establishment of the group’s goals-based advice business model, AMP Advice, late last year, with the aim of using interactive technology to streamline the process of advice delivery.

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