SMSF sector suffering from lack of fintech development

The level of technology development and innovation in the SMSF sector continues to remain low despite the number of trustees willing to invest in this area, according to one consultant.

Mayflower Consulting director Sarah Penn says despite the fact that there are now a million people with SMSFs in Australia, there are still very few fintech enhancements.

Ms Penn told SMSF Adviser that while there are a lot of new managed funds launching all the time, particularly venture capital firms, and many people want to put money into new and innovative things, “there still aren’t very many people building these new and innovative things”.

“Even the recent changes in legislation, which are meant to be about encouraging fintech, are actually all about encouraging investment in fintech in Australia, but they don’t encourage people to leave their day job and go and try something,” she said.

“It’s all focused on the flow of money. SMSFs are part of that, SMSFs want to invest in new and interesting things, but there still aren’t that many new interesting things coming through the pipeline in Australia unfortunately.”

Ms Penn said among the companies that are developing new ideas, their ideas tend to be focused around the venture capital investing model.

“They’re still not actually building something new at the end of the pipe that makes a difference to the everyday lives of consumers, accountants and advisers.”

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