Software developer CBoxx has launched a new tool for intermediaries trying to plan a mix of fees and commissions-based revenues post-de-polarisation.
4Cast builds on CBoxx’ previous solution Business Profiler (BP) by enabling modelling of future business as opposed to giving firms a clearer idea of current incomes.
Mick Catherall, managing director CBoxx, says 4Cast is designed for larger enterprises with specific need to develop strategies, rather than smaller IFA businesses for which use of the tool may not be so economical.
”If a big IFA is looking at de-polarisation the tool is good to use for planning moves of tranches of business to multi-tie. For example, the business may want to maintain services to high net worth clients on a whole-of-market basis, while other tranches of clients are moved to multi-tie.”
4Cast is designed to allow modelling of such different approaches and the resulting impact on revenue streams before they take place.
The tool works best if coupled with Business Profiler, Catherall says.
”You need to understand where your revenue is coming from now. That’s what the Business Profiler tool is for.”
Output from BP based on back office data can then used as input into 4Cast.
It is the point of integrating BP into back office systems which determines that 4Cast is not economical to use for smaller businesses.
Likewise, smaller IFAs looking to networks to provide services should not expect a similar solution anytime soon. The objective of 4Cast is to enable individual businesses take strategic decisions on an individual business level, but this is unlikely to be practical in a network environment.IFAonline
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