As Australians increasingly turn to financial advisers to help navigate the COVID-19-induced downturn, myprosperity is seeing record quantities of debt recorded on our platform.
Up nearly 200% since the start of the year, recorded debt on the myprosperity platform is now more than $12 billion. There’s also been an estimated 80% increase in credit card accounts added to the platform since late 2019.
The myprosperity portal is used by advisers and households to track assets and liabilities so that better decisions can be made regarding a person’s entire wealth situation. The platform is used by more than 35,000 households in Australia.
“As Australia copes with this recession, many are turning to their accountant or financial adviser to find a way through these challenging times. The increase in liabilities recorded on the myprosperity platform, combined with climbing usage figures, demonstrates that there’s growing concern over managing debt. People are seeing the need to keep on top of their money during these tough times,” myprosperity founder Peter McCarthy said.
“For households, we’ve seen a significant spike in requests around assistance in financial management, retirement and estate planning, highlighting the increase in concern around financial health. These troubling times suggest people are looking for advice to help stem the loss and shore up their financial future.”
Tim Munro, Founder of Change Accountants said, “We support many business owners across varying sectors of the economy including the hospitality industry which has been smashed by the lockdowns. When COVID-19 hit, like many advisers, we were inundated with requests from clients seeking help with their finances, from applying for Jobkeeper and Jobseeker to drawing up weekly or monthly cashflows to help them get through. It’s been a really busy and challenging time. Technology has played a vital role in enabling us to engage with, and undertake reviews of many more clients than would otherwise have been possible in the traditional face-to-face world.”
As Australia headed into its first lockdown earlier this year, myprosperity experienced soaring usage of its platform as more advisers and accountants moved to work remotely. myprosperity has again seen the usage of its platform increase as many Australians move to manage their wealth more closely and many advisers continue to work remotely. The use of online forms – or digital fact finds, tax checklists and onboarding forms – which help advisers digitise the engagement process by eradicating paper to streamline data collection, has increased by over 500% since December 2019.