Cashflow planning can be complicated and hard to get right at the best of times. In a world that is more uncertain than ever clients need to be able to accurately forecast what their position is likely to be at a given time. They also need the reassurance of being able to factor various ‘what if’ scenarios into their plans so that they have peace of mind that no matter what the future hold that their cashflow is assured.

Cashflow planning technology that can transform complex processes into efficient user-friendly solutions is thus highly valuable. Jamie Keen, Country Manager, UK & Ireland at aixigo says that the firm’s cashflow planning tool can do just that.

 “Our Cashflow Planning tool aims to make the complex easy. It meets new expectations from end clients and advisers alike around having a better experience that allows for both granularity and personalisation,” he says.

The idea is to break down the client’s various assets and liabilities plus pensions, insurance and the like and come up with something that is personalised to that client’s situation and therefore accurate.

“We developed this system in response to our clients becoming frustrated by using different systems with different inputs and that ending up in things being calculated in different ways – obviously this has an impact in the end advice. What was needed was something that is accurate and that uses the same calculation methodology.”

This helps the adviser to talk to the client and to be informed and be able to tell the story and articulate ideas on how best to navigate going forward. The system is designed to be both easy to use and flexible so that as a client’s situation changes then forecasts too can be changed.  The tool can also provide lots of simulations available to account for a variety of variables.

”The ‘what-if’ scenario simulation allows client and adviser to simulate several scenarios together and make complex calculations, creating a strong mutual understanding,” says Keen.

He adds that this flexibility is key in an era where personalisation is rapidly becoming an expectation. “The demand from customers with regard to personalisation within the portfolio construction area- now starting to translate through to planning,” he says.

“Firms need a decent and robust planning tool which can provide for individual circumstances and show that the adviser has a clear understanding of the client’s goals and how various things might have an impact and how to mitigate that impact,” he says.

“Advisers want to be able to go to clients with real life data and an achievable plan and to be able to react quickly when something happens and there is a change in circumstance and again come up with a plan,” he adds.

Ongoing automatic monitoring of the financial situation for all customers also adds to the product’s attractiveness. Whenever an important change occurs for the customer, they and the adviser are proactively informed.

All this adds up to cashflow planning becoming a real service experience. If the customer feels appreciated and understood then they are more likely to engage with the adviser and trust them.

The tools also works for advisers in that they are able to perform cashflow planning more effectively and this adds value that way, but also in that the system allows for time efficiency so freeing up the adviser’s time.

Regulatory future proofing
The tool is also able to adapt to any future regulatory or tax developments. By automating changes for the adviser, 100% compliance with regulations is assured. The underlying algorithm can also estimates income and asset development plus taxation over an individual time span.

“This is timely,” says Keen. “The FCA is becoming ever more stringent in its demands for accuracy when it comes to asset and monetary values calculations.  It is a very complex area and it will only get more complex- so being able to deal with this effectively provides a comfort level for adviser and client alike.”

Technological future proofing
Technological future proofing also plays a part. API technology offers the highest flexibility and quality. This makes for fast integration into existing infrastructures. It also gives a multi-channel functionality opens up new possibilities so that advisers can use the Cashflow Planner in the advice process as well as being able to integrate it  into additional services in the long term.

“The solution can be offered wherever there are contact points to the customer,” says Keen.

He also point to a simplified version of the Planner. “This can be placed on the website or within an online banking solution, as an incentive for a customer to choose your advice. End clients can start and have a play and then transfer the result of that into a conversation with an adviser,” he says.

Heavy lifting
In all instances the system is dealing with all the data input and heavy lifting is done with minimal manual input or repetition. This allows the algorithms to do their work accurately and without fuss and provide something at the front end that is accurate and easy to consume.

Keen comments: “The ‘what if’ scenarios are powerful but they are only as good as the data inputs. Data can be taken from CRM or from financial planning questionnaire and other areas and then standardised before being used in the planning tool,” he says. “We are looking to incorporate unstructured data such as that from social media or other digital footprints too so as to really be able to have something holistic and with a 360 degree view.”

The tool has been designed to be highly configurable and customisable so as to be relevant to as broad a church as possible. It can be used as a standalone element or integrated with the rest of the aixigo suite.  “Key to this is that is has to be easy to use and adaptable in terms of being able to customise it and to look and feel like the firm’s own brand,” says Keen.

Thus the tool should appeal to advisers dealing with a broad array of customer bases. “The system has to be good for both complex and simple situations too so that it has the maximum possible appeal in terms of the companies that can use it and their client base. We usually play into lower tier one and tier two but this product could scale every segment as it is so adaptable. That is the beauty of it- it can be pitched at the level of the client base,” says Keen.

Ultimately any solution has to work for both client and adviser and be of benefit to the business. Keen believes the planner does just that. “The Cashflow Planner takes all regulations into consideration, is easy to use, saves time and costs and increases profitability. It is the perfect balance between complexity and simplicity” he says. “As the adviser saves considerable time and effort, more time is available to focus on the actual relationship and look to add value that way too."

Click here to watch our original webinar with Jamie on Cashflow Planner