Independently-owned boutique advisory firms are using their autonomy, and small, nimble size to trial and implement innovative technology solutions with over 30 non-aligned practices, adopting automated personal financial management (PFM) tool Moneysoft in the last 15 months.
Jon Shaw, head of operations at Moneysoft, said the strong appetite for automated savings, budgeting, cashflow management and goal tracking tools like Moneysoft was being driven by consumer demand for customised goals-based advice, which was being championed by the IFA community.
“There’s a shift from product-based investment advice to goals-based advice, and advisers are increasingly looking at a person’s investable cashflow in addition to their investable assets, in order to help them understand their lifestyle and financial position, positively change their behaviour and ultimately achieve their goals,” he said.
“Not only does Moneysoft automatically gather and consolidate account balance and transaction data from multiple sources including bank and superannuation accounts, it’s a client engagement tool that’s making it easy for advisers to start a conversation about cashflow and visually illustrate the value and power of money management. It’s helping advisers reach previously disengaged audiences with a compelling proposition that isn’t focused on insurance, super or investments.”
According to Sydney-based Omniwealth adviser Hoa Tran, who has been using Moneysoft since January, self-licensed practices have the unique advantage of being able to move quickly to integrate leading technology solutions into their advice and business processes to increase client engagement and maximise efficiency.
“A key benefit of being self-licensed is that we’re able to look at what’s available in the market, road test solutions and determine quickly if they’re the right fit for our clients,” she said.
“That’s important for us because we need the freedom to choose solutions that work for our clients and are easy for them to use.”
Ms Tran added that Moneysoft had made the advice experience more enjoyable for clients by eliminating the need for them to manually record, and often guess, their revenue and expenses.
“Moneysoft provides a true picture of a client’s position and a detailed breakdown of their spending and surplus cashflow, so we can develop a personalised strategy and coach them to make smarter investment decisions and help improve tax efficiency,” she said.
“We’re also often required to work with a client’s other professional advisers including their accountant and mortgage broker, and we’ve found that Moneysoft enables us to provide them with most accurate, up-to-date information. This has been particularly handy for clients who have applied for loans to buy a new home or investment property. We’ve been able to immediately provide their broker or bank with a true picture of their income and expenses.”
Moneysoft is on track to have 50 non-aligned advisory firms on board by the end of the year, in addition to the group’s institutionally-aligned dealer group clients.