Advisers split on cashflow modelling priorities

Focus Solutions surveyed the senior members of seven adviser networks - St James's Place, Drewberry Wealth, Roxburgh Financial Management, LightBlue UK, Plan Money, Cavendish Ware, Bankhall (part of SBG) - in June this year. 

One in seven (14%) advisers cited ‘fast journey from fact-find to illustrations' and ‘ability for client to engage with the process' as priorities for cashflow modelling software. Senior staff from just one firm, meanwhile, flagged ‘cost and integration with an existing platform' as an important factor.

Two-thirds (67%) of respondents believed cashflow modelling was essential to the advice process. 

One respondent highlighted the importance of cashflow modelling following the Retail Distribution Review 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". 

Those advisers who did not use cashflow modelling said either their client did not require it or they preferred to use their own systems, such as Excel-based planners. 

Rory Percival launches cashflow planning best practice guide

Drewberry Wealth director Tom Conner said: "Cashflow 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." 

Focus Solutions head of managed services Steve Andrews said: "Historically cashflow tools have been quite complex and hence not something which was easily adopted within advisory firms and using tools interactively with customers wasn't common practice. 

He added: "Having the ability to illustrate real time and future financial events in a clear and interactive way has improved adoption, while having a tool that can be used with customers face-to- face and in remote co-browsing sessions has seen it being more widely adopted in initial customer meetings and within ongoing reviews. 

"Although some advisers still don't use cashflow modelling, those that do tend not to go back in our experience."

• Tweet  
• Facebook  
• LinkedIn  
• Send to  

• Topics
• Technology
• cash-flow modelling
• Focus Solutions
• Technology