Software firm Evalue is in the final stages of developing its own simplified ‘advice’ proposition, which big providers can white-label.
Speaking to FTAdviser, senior consultant Andrew Storey said their simplified advice prototype was currently going through user testing and should be ready for rollout in the next six to nine months.
“It all depends on which of the big guys are most willing to help advisers with this key area,” he commented, adding that competition is increasing now the technology has come of age and people expect to be able to do everything online.
Now Financial Conduct Authority regulated, Evalue is looking to build upon existing tie-ups with insurers, wealth managers and employee benefit consultants. It already provides the technology behind around 80 per cent of pension providers’ retirement income calculator tools, most recently Aegon’s Retireready planner.
Rather than these new tools detracting from what advisers do, Mr Storey said they should complement existing practices.
“What we’ve found is that most advisers get 80 per cent of their income from 20 per cent of their clients, with DIY methods being appropriate for those who are either less actively engaged, or have portfolios too small to make regular face-to-face sessions cost efficient.”
He was also quick to reassure advisers that they would retain these clients, rather than them all going into one general pot, with certain triggers in the online process bringing them back to the advisory firm for a full service.
Simplified users would be able to earn credits for giving more information through the service, which could then be redeemed for money off full advice sessions.
Full costing has not yet been finalised, but Mr Storey suggested demand would be in the £150 to £250 range, as employers could use the £150 tax deductible expense limit.
Of course, Evalue is not the first to launch a simplified proposition.
Back in April, enhanced annuities specialist Just Retirement developed a service designed to help retirees with medium-sized pension funds navigate the at-retirement freedoms. The telephone-based system was launched with Phoenix Life and is aimed at the ‘middle Britain’ savers with more modest pensions who are often feel excluded from advice.
The following month, LV announced a similar service in conjunction with online adviser Wealth Wizards. Clear Online Retirement Advice initially costs £199, but if recommendations are taken on then costs increase to £499, although these figures are still subject to consumer testing.
Back in November last year, Royal London also said it was working on ways to give “retiring non-advised customers” access to independent and impartial advisory firms at a lower cost than in the open market.
peter.walker@ft.com
