Research by adviser software provider Focus Solutions has highlighted some of the most important areas that advisers consider when it comes to selecting cash flow modelling software.
The survey of seven leading adviser firms and networks representing over 11,000 advisers highlighted ‘ease of use’ and ‘quality of visual and graphical images’ as the key areas (29% each). ‘Cost and integration with existing platform’, ‘Fast journey from fact find to illustrations’ and ‘ability for client to engage with the process’ were also highlighted as important factors by advisers when deciding which cash flow modeller to use.
Two-thirds (67%) of respondents believe cash flow modelling is essential to the advice process. Comments supporting the use of cash flow modelling have highlighted its importance post-RDR in order “to provide clients with goals based financial planning support rather than selling a product. Most will use the tool in the arena of pension planning (drawdown etc), but a few firms have committed to offering holistic approach,” according to one respondent.
Those advisers who do not use cash flow modelling cite either that their client doesn’t require it or they prefer to use their own systems, such as excel-based planners.
Tom Conner of adviser firm Drewberry Wealth said: “Cash flow modelling enables advisers to demonstrate the value we add as advisers through thorough, managed, objective-based financial planning and it is an integral part of the advice process. It’s useful for illustrating an often-complex financial plan for clients and increasing client engagement, bringing to life the effect that decisions will have on their future financial position.”
Steve Andrews, Head of Managed Services at Focus Solutions, said: “Cash Flow Modelling is becoming more important to the advice process now the technology is there to build systems that seamlessly fit in to the adviser’s existing platforms to really help with both the advice and the client servicing areas of advice. The key is that it should be quick and easy for advisers to be able to use it.
“When Focus Solutions launched Now:Plan Cash Flow 2.0. we designed it so advisers can outline and compare multiple scenarios quickly and easily, discuss the impact it may have on investments with clients and illustrate real time and future financial events to support the advice process. Although some advisers still don’t use cash flow modelling, those that do tend not to go back in our experience.”
Cash flow modelling enables advisers to demonstrate the value we add as advisers through thorough, managed, objective-based financial planning and it is an integral part of the advice process. It’s useful for illustrating an often-complex financial plan for clients and increasing client engagement, bringing to life the effect that decisions will have on their future financial position.
Senior members of seven adviser firms networks were surveyed in June 2018 representing 11,000+ advisers from St James’s Place, Drewberry Wealth, Roxburgh Financial Management, LightBlue UK, CBK, Cavendish Ware, Sesame Bankhall Group.
Founded in 1995, Focus Solutions is a financial services software house with a track record of providing effective advice and business automation, CRM, T&C and financial planning solutions. Focus works with leading financial advisers (at both network and firm level), bancassurers, product providers and mortgage lenders to deliver solutions across a range of products such as investments, pensions, protection, mortgages and general insurance. Since 2011 Focus has been fully owned by Standard Life but operates independently. www.focus-solutions.co.uk