IOOF Business Model Canvas

Custodians safeguard client assets and streamline settlements and corporate actions, underpinning custody of a superannuation pool of about A$3.6 trillion in Australia as of June 2024. Insurers supply group and retail life/TPD/income protection linked to super and advice solutions, broadening product breadth and improving capital efficiency. Service levels and claims handling materially drive client satisfaction and retention.

Strategic fintech and platform alliances deliver scalable admin, reporting and digital advice with 99.9%+ SLAs and ISO27001/SOC2 controls. Open-architecture partners provide 1,000+ external funds per platform (2024) and broaden ESG/alternatives access. Custody and insurer ties support A$3.6tn super pool and linked life/TPD products; 1,700+ tied advisers drive distribution.

Design and deliver diversified portfolios, managed accounts and model strategies tailored to adviser and client objectives. Conduct rigorous manager selection, ongoing monitoring and systematic rebalancing to preserve intended exposures. Apply risk, ESG and liquidity controls at portfolio and fund level while communicating performance, attribution and actionable insights to advisers and clients.

Deliver goal-based advice and SOAs/ROAs across IOOF’s A$250bn+ FUM (2024), using hybrid human-digital workflows and annual/life-event reviews. Administer super, pension and investment operations at scale amid Australia’s A$3.7tn super pool (June 2024), ensuring platform availability, security and tax/fee optimisation. Manage portfolios, manager selection, rebalancing, ESG and compliance with APRA/ASIC reporting cadence.

Proprietary administration systems, APIs and data warehouses power scale for IOOF, supporting over A$200bn assets under administration in 2024. Advanced analytics drive advice, risk modelling, pricing and customer experience. Robust cybersecurity and privacy controls safeguard client data, while integrations with custodians and adviser tools reduce friction and operational errors.

IOOF’s AFSL/RSE and trustee capabilities support core wealth, advice and super operations with A$121.0bn FUM/A in FY2024. Adviser network and practice partners drive lifetime client value; Insignia Financial reported FUMA ~A$316bn in 2024 and ~1.6m clients. Proprietary admin systems, analytics and strong governance supported A$286.5bn AUM/AUA at 30 June 2024.

Choice with efficiency: IOOF/Insignia in 2024 supports broad investment menus and managed accounts with competitive fee tiers within a platform managing A$318 billion, enabling scale-driven pricing for retail clients. Digital onboarding and straight-through processing cut administrative steps and accelerate account activation. Institutional pricing pass-through narrows fee differentials between retail and wholesale. Transparent, consolidated reporting and monthly statements reinforce client trust.

Integrated ecosystem streamlines management of Australia’s A$3.6 trillion super system and consolidates super, investments, insurance and advice, reducing fragmentation and admin.

Coordinated tax and portfolio management plus hybrid advice improve net returns and retirement income certainty with annuity-like options and scenario modelling.

Scale (platform A$318bn) enables competitive fees, digital onboarding, strong governance (Insignia Financial ASX:IFL) and robust security.

Webinars, calculators and market updates boost financial literacy by leveraging Australia’s 94% household internet access in 2024 (ABS), widening reach and measurable engagement. Targeted retirement and tax guides lower client anxiety by addressing concrete planning needs and compliance changes. Data-driven content tailors relevance using behavioural signals, making engaged clients demonstrably stickier through higher retention and referral rates.

Ongoing advice retainers use annual reviews, rebalancing and life‑event check‑ins; typical Australian advice fees ~0.8–1.0% p.a. (2024). Multichannel support (67% use ≥3 methods) and case ownership speed resolution and reduce costs. Segmented lifecycle journeys leverage APRA A$3.4T super balances to drive retention.

Contact centres deliver specialist support for super, retirement and platform queries, servicing clients in an industry overseeing A$3.5 trillion in super assets (APRA, June 2024). Triage and escalation workflows channel complex cases to advisers and technical teams to improve first-contact resolution. Quality monitoring and recorded audits ensure regulatory compliance and training fidelity. Sales-assist teams drive upgrades and consolidation opportunities across client accounts.

Tied adviser network manages >A$200bn FUM (2024), boosting conversions via CRM and referrals. Digital app supports self‑service; 86% online banking adoption (2024) drives mobile-first demand. Contact centres and workplace channels leverage A$3.6tr super (APRA June 2024) and 11% SG to scale flows.

Clients 55+ optimizing contributions and shifting to income need sequencing risk management and disciplined drawdown strategies to protect portfolios as they begin withdrawals. With Australian life expectancy around 83 years, priorities include stability and budgeting for healthcare contingencies. They seek ongoing, empathetic guidance and tailored income solutions to preserve capital and meet rising retirement expenses.

Younger workers (60% digital-first) need low-cost defaults and nudges; professionals (A$0.25–2m investable) prefer hybrid managed outcomes; 55+ (AUS life exp ~83) require income sequencing and drawdown; 2.4M SMEs need compliant low‑touch admin as SG rose 11→11.5% (2023–24).

Regulatory and compliance costs for IOOF cover licensing, external audit, legal fees and remediation programs, with remediation provisions and legal spend materially elevated after reviews and customer programs. Reporting obligations to ASIC, APRA and ATO drive ongoing data, surveillance and conduct-control investments. Professional indemnity and operational insurance costs surged, with PI premiums rising about 20% in 2024, adding meaningful annual expense pressure.

Salaries, adviser accreditation and practice support are core recurring costs; platform and IT spending was A$110m in FY2024. Regulatory, remediation and legal costs remained elevated with PI premiums rising about 20% in 2024. Distribution shifted toward digital where content-led programs deliver ~3x the leads of paid channels, increasing fixed CRM/SaaS spend.

Investment management fees derive from MERs on managed accounts (around 0.60% avg in 2024) and higher MERs on in-house funds (roughly 0.90%), supplemented by performance fees where applicable (typically up to 20% of outperformance). Research model licensing to platform and adviser partners generated recurring licence revenues (c. A$25m in 2024). Institutional share classes added scale, bringing roughly A$10bn incremental FUM in 2024.

Admin, advice, investment management, insurance and net interest were IOOF's 2024 revenue pillars: admin fees scale with AUM and consolidation; advice 0.5–1.5% p.a.; MERs ~0.60% (managed) / ~0.90% (in‑house). Research licences generated A$25m and institutional share classes added ~A$10bn FUM. Net interest spread ~0.1–0.5%.