Moving practice management systems is something you really only want to do once a decade

While my focus is substantially on how technology will change the way we work in the future, our AdviserSoftware.com team spend considerable time reviewing what current systems can do and how they are evolving, so I obviously have a view on existing offerings.

At one recent session a delegate asked what system would I buy myself if I was running an advice business.

A company's client proposition and the services businesses wish to prioritise will be key factors

My response, much to the frustration of the questioner, had to be that it will depend entirely on the target audience and the advice proposition I was seeking to deliver. Suggesting a system without any analysis of the user’s needs would be like recommending a pension without any background information whatsoever.

There are many important issues to consider. A company's client proposition and the services businesses wish to prioritise will be key factors.

Another factor to consider is the software used by the business and depth of integration with each system; which practice management systems offer the most detailed integration into your preferred platform partners?

At the risk of stating the obvious, when you are looking to bring any new technology into a business it is crucial to understand what your priorities are and what you really want the system to do for you.

In my experience, anybody who does not work out precisely what they want the new system to deliver will end up with a system they are not happy with. It may take time getting your requirements right, but that is much better than spending years regretting you bought the wrong system.

Technology salespeople are always very good at showing you the shiniest part of the system, but if that does not fix the issues you are keen to address then you are not going to be satisfied with that system.

While users really should work detailed priorities, the following are a few points that may help you build a shortlist of potential suppliers.

For most small adviser companies, the choice may be a straight comparison between the two largest systems in the market: Intelliflo Office and Iress Xplan. These are the most comprehensive mass market options. Plum is also worth a look as it has recently had a thorough overhaul and been rebuilt completely based on Microsoft Dynamics CRM. Plum does include a deep integration into its parent’s Praemium platform.

That said there are a number of new systems like Plan Happy and Elen which have been created by advisers who have not felt the established propositions deliver what they want. With new systems it is important to understand how much of their functionality is already available, what else is on their roadmap and when will it arrive.

Time4Advice is also based on MS Dynamics but has historically looked for companies needing 10 or more users. This may exclude the majority of adviser businesses. I can see this changing in the future given their recent acquisition by Transact owners Integrafin, especially if the company is a major Transact user.

For companies happy to consider vertical platform integration, both True Potential and Benchmark Capital’s Enable system may be appealing. Each has very tight integration between the advice tech and the platform. Benchmark’s proposition may be particularly attractive to regional chartered companies, which it was very much designed for.

Abrdn-owned Focus Solutions has some outstanding technology but it is really designed for companies with 50-plus users. If its parent could find a way to offer elements to smaller companies that are major users of its platform, the asset manager could have a solution that would be hard to better.

Other long-standing industry systems include Bluecoat, Durell, JCS and some less well known ones such as AdviserCloud, Assyst, and WitsIFA. Historically, SSP had an outstanding customer base, but seems to have lost its way in the wealth market in recent years. The company is now predominantly a general insurance system supplier. Most people think of Prestwood Truth as substantially a cash flow modelling tool, although some see it as a practice management system too.

Getting the right practice management system for your business is one of the most important decisions any advice company will ever make. 

Getting the selection right or wrong will have a dramatic impact, positive or negative, on the level of service you can provide to clients, the efficiency of your company and ultimately the profitability of your business.

Moving practice management systems is something you really only want to do once a decade, so it is crucial to spend the time identifying what you really want and matching this with the best system provider for you.

Ian McKenna is founder of FTRC and AdviserSoftware.com