IRESS continues market domination
Financial planning software company IRESS is continuing its market domination, with new figures showing it now holds 50 per cent of the planner market.
The Investment Trends 2013 Planner Technology Report, which surveyed more than 1100 advisers, found Xplan held 51 per cent of primary planner relationships - a result of the continuing migration of VisiPlan and MLC’s AdviserCentral users.
IRESS acquired VisiPlan in 2007, while National Australia Bank and MLC commenced the roll-out of Xplan to its 4000 users in bank branches and self-employed networks in September last year.
This has resulted in Xplan’s market share jumping from 39 per cent this time last year to 51 per cent in 2013.
“The planning software market has completely morphed over the past decade,” said Investment Trends senior analyst Recep Peker. “Where VisiPlan used to dominate, and Microsoft Excel was used to plug the gaps, Xplan is now the main planning tool for half of Australian planners.”
The industry has gone from the top four providers holding 56 per cent of primary relationships in 2004, to a concentrated market where the top four now hold 87 per cent of primary relationships, Peker said.
COIN, which was acquired by Rubik last year, has a steady 25 per cent market share, while Midwinter is also at its steady 7 per cent.
However, Midwinter had the largest increase in client satisfaction from last year and had the highest average overall satisfaction rating.
Relative to the industry, it scored notably better for ease of use, producing simple plans and scenario modelling.
“Versus last year, Australia’s planning software providers increased adviser satisfaction the most with constructing portfolios, capturing fact-find information, helping select investments and producing client review reports,” Peker said. “This reflects the extensive development work undertaken in these areas over the last 18 months.”
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
