Virtual planners: online and mobile

Financial planning software vendors may have differing views on whether web-based solutions will predominate in the short-term, but the providers have one thing in common: they all have an online version of their own application on offer to planners. It seems that whether you agree with the use of online technology or not, you’ve got to have it available to remain in business.

Cynicism aside, it is becoming clearly obvious that web solutions have become an attractive option for dealer groups.

Xplan, which was only launched in 2003, is now generally considered one of the top three players in this industry and only offers a web application.

Jason Hoang, national sales and marketing, says: “Even taking off the Xplan hat, I would have to say that web is the only way to go forward. Everyone is going to be on the web, so desktop is only going to go backwards.”

Coin Software, currently being implemented by the Commonwealth Bank, was chosen for one specific reason. Paul Barrett, managing director of Financial Wisdom, explains: “The key differentiator was that Coin could cater for online and offline. A couple of the other providers were all or nothing.”

Speed

So what are the arguments for and against?

Certainly, speed is still seen by many as one of the primary disadvantages of using a web-based application.

IWL currently offers both desktop and web software, and Ross Johnston, executive general manager — financial advisory solutions, confirms the firm is committed to both.

However, he believes the slower speed of the web does have an impact on functionality.

“The modelling is slower because you always have the browser talking back to the central service, and so every time you want to change your numbers in your modelling it takes a lot longer.”

The development of broadband has certainly quickened the pace of technology, and many users of web solutions would probably fail to recognise that their software was slow. As an ongoing problem, perhaps only IT developers will recognise how applications could work better.

Matthew Lock, managing director of CARM, says: “With broadband, speed has completely disappeared as an issue.”

Hoang adds: “There is no way that a web-based solution will ever be as fast as a desktop, but I think the advantages far outweigh it being slightly slow in response times.”

Whatever your view, speed as a problem may not always exist.

Dietmar Baumgartner, leader, wealth management at Capgemini, says: “This is going to change very quickly with new technology. I think this bandwidth problem as it stands at the moment won’t be there in one or two years.”

Support and upgrades

The single biggest advantage of web-based solutions is the power to update the software of all customers in one easy manoeuvre.

Unlike desktop applications, where a software vendor relies on customers to either install CD upgrades or download patches, new regulations can be uploaded overnight, ensuring that clients are using the most current information when they begin work the next day.

To Barrett, this is essential.

“If you are serious about seeing your customers more, and doing less compliance and bureaucracy in your practice, then you need a system that is seamless. Let’s say we get a new piece of regulation, as we do all the time. If we can seamlessly incorporate those changes, and not have to ask advisers to do it, then surely that’s a win for the adviser,” he says.

Maintenance is also quicker and less expensive.

Hoang says: “If a client rings up and says I’ve got a problem, we can pretty much log onto their site and fix it straight away. If it’s not web-based, you’ve got to send a person out physically to look at how they’ve installed the software on their servers. It’s costly.”

Central database

According to Johnston, many practices are attracted to the web because it offers a central database, not recognising that this is also available through desktop software.

In the past, all the data has sat on the planner’s PC, whereas with the increased focus on compliance many businesses want that central control, so they can be like Big Brother and look at what planners are doing.

“We’ve found that a lot of people are quite happy with the desktop, and if we can give them the centralised database they would actually rather stay on that than move to the web.”

Still, unless you outsource your data storage, using a desktop application means that a server at the practice will be necessary, which will involve another set of support and maintenance requirements.

Most web-solutions use a web hosting facility operated by the software vendor, as in Xplan’s case, or through a third-party — for instance, CARM uses Web Central.

According to Lock, it is almost impossible to lose data.

“Web Central’s disaster recovery means that you would be hard pressed to lose a day’s work. The back-ups are that frequent.”

Wireless broadband

With a web-based solution, advisers on the road can make the most of wireless broadband to ensure they always have access to their planning systems and client information.

And according to Lock, it could even result in increased adviser numbers.

“All of a sudden, you now have the door kicked right open for insurance agents and mortgage brokers, people like Wizard and Aussie Home Loans, where the business model has been based on a mobile sales force.

“When they have dabbled in planning before, they looked at the existing providers where a planner has to be sitting in an office at a desk with a client coming to them. That was 180 degrees different to their normal sales force model, which is in your car with your mobile going to people’s houses at 7pm. Wireless broadband now makes it a reality for all those other distribution channels to start flooding into planning.”

And before advisers start to feel nervous, the advent of wireless could work to their benefit — by allowing planners to be more mobile, and perhaps offer mortgage advice in addition to wealth management.

Making a choice

Many dealer groups and advisers are influenced by price and while it can be difficult to compare one product with another, web-based solutions do appear to cost more up-front — perhaps because providers are unlikely to gain much in the way of ongoing costs via implementation, support, maintenance and training.

But Hoang is quick to add: “In the long run, web solutions are cheaper.”

And if time is money, implementation is certainly quicker, as there is no need to physically install software applications and any surrounding hardware.

Baumgartner adds: “The big advantage is that they reduce the cost of the technical implementation.”

No one can predict the future, and the past 10 years have already seen new technologies turn the world on its head.

But the evidence suggests that the worldwide web will offer planners a great deal more than just lunchtime surfing.