The 2015 Adviser Opportunity Index (AOI) is the first tool for financial advisers to measure and compare the relative opportunity across 83 regions encompassing all of Australia. The index takes a comprehensive view of opportunity by weighting seven variables relevant to the supply and demand for financial advice. The supply side takes into account the density of advice relative to the region’s population, whilst the demand side focuses on key wealth and demographic characteristics. So the 2015 AOI does not just look at where the wealthiest Australians live, but has a balanced view of where other advisers have overlooked great opportunities.
The key benefit of the AOI is its ability to be adjusted to specific needs. Each firm has unique advisory goals, whether it’s SMSF advice, direct equities or retirement planning. CoreData understands this and can customize the AOI to suit your business goals and support your business development strategies.
Top-10 Advisor Opportunities
Mandurah ranks as the best overall opportunity in Australia with a score of 8.01 out of 10. The forces driving this high score are a relatively wealthy population, a high proportion of pre-retirees combined with a low concentration of advisers.
Regional WA and Perth dominate the top-10. However, areas like the Mornington Peninsula (VIC) stand out as well with 80 authorized representatives servicing almost 300,000 people with an average annual income on financial assets of over $10,000.
Bottom-10 and Opportunities by State
Toowoomba (QLD), Parramatta (NSW) and Shepparton (VIC) are the three least favorable areas to expand into. These regions are generally marked by low to moderate wealth versus a greater concentration in authorized representatives.
The key observation for the largest states is the fact that Greater Capital Areas (GCAs) do not necessarily have the highest score. Three of the five top opportunities by state are not located in GCAs, so looking to expand beyond the state capitals might pay off.