Australia’s multibillion-dollar financial services industry is about to get an exciting new entrant, TOMORROW Super. Readying for a $5m pre-IPO funding round, TOMORROW is promising to deliver a ‘game changing’ low cost, hassle free, transparent and ‘financial adviser friendly’ solution to customers looking to take control of their wealth.
The funding round comes to market off the back of a recent $1.2m capital raise for commercialisation of TOMORROW’s superannuation, pension and direct investment platform. TOMORROW has carefully studied and learned from the evolution of platforms in the U.S., including Charles Schwab, which were designed for the consumer but enjoy mass adviser support. Crescent Wealth acquired an 8% stake in the recent raise and will become TOMORROW’s maiden white label platform client.
TOMORROW is bringing a neo-banking customer experience to the world of superannuation and investment. It is the brainchild of former BT Financial Group executive Wes Hall (pictured). Former King & Wood Mallesons Chairman and a Managing Partner, Frank Zipfinger will chair the company, Professor Talal Yassine and UK based financial services veteran, Peter Nicholas, round out the board.
According to Hall, “There are three undeniable trends when it comes to investing in Australia: economic activism through ESG investing, low cost, and the rise of the self-directed investor – and TOMORROW will deliver on all three,” he said.
“Many existing ESG offers in the market feel too much like a ‘one size fits all approach’ and they aren’t all low cost, so we wanted to create a platform that allows an individual or a household to invest in a portfolio or specific companies that align to their values or interests.
For TOMORROW’s target market, it’s about “stage, not age”, but Hall draws parallels from those who typically establish an SMSF, usually aged in the 35-50 year bracket.
“Many SMSF customers don’t believe ‘traditional super’ options meet their needs and they’re on the hunt for something better. They might have ambitions of running their own super in a SMSF but the reality is that it’s much more administratively challenging and there is a truism in the market that for most people, ‘there is nothing self-managed about a self-managed super fund.”
“The platform offers many self-managed super fund attributes but without the hassle and high costs. We believe that by offering greater choice, transparency and control with a consumer-led and financial adviser proposition, we can help address the current difficulties Australians face with their super,” Hall said.
TOMORROW’s proposition provides a lower-cost, entirely digital alternative to the existing platforms in market at a time where financial advice in Australia is experiencing rapid dislocation, and the Best Interest test and FASEA standards are re-shaping what and how advice is provided, and the emerging trend of episodic advice is embraced.
Hall said TOMORROW was ideally placed to benefit from the transition to episodic advice (i.e. one off strategic advice) that is complementing traditional advice models in a dislocating market where adviser numbers are decreasing despite the need for advice growing.
The company will offer a low cost, fully managed account platform proposition that gives clients a guided journey to help them choose between diversified actively managed and index portfolios aligned to their values and interests and the portfolios that include a blend of managed funds, ETFs and direct Australian and international shares. Outside of the managed portfolios, TOMORROW also will also offer clients the ability to invest in both Australian and US stocks to invest in global brands such as Nike, IBM, Microsoft, Zip & Tesla.
“TOMORROW is positioned to take advantage of the changing dynamics of investing and financial advice in a way that builds a better consumer outcome. We’re proud of how far we’ve come with the concept; it delivers high margin and will be low cost.
“We know that the Australian superannuation industry has changed little over forty years. It’s currently highly overpriced for what you get, and the customer experience and investment choices tend to be an afterthought, so it’s difficult to differentiate between funds. TOMORROW when launched, will change this,” said Hall.
In addition to Wes Hall as founder and CEO of TOMORROW Super, the executive team features chief product officer Tristan Laszok who will spearhead product development and client experience head Steve Bull, who will focus on ensuring the client experience is like no other. Anne Fitzgerald will drive strategy and commercialisation.
TOMORROW is being assisted by Prime Financial Group’s (ASX:PFG) Capital & Corporate Finance team.
TOMORROW is seeking investors in its current funding round, who have the unique opportunity to participate in the next generation of wealth management platforms, TOMORROW Super is commencing a pre-IPO raise and sophisticated investors who want to be become a shareholder in the business can register their interest at www.tomorrowsuper.com.au