Your IndustryNov 24 2014

Back office systems: Adviser case studies

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We’ve covered the providers and trends within the world of back office systems, but what about the actual advisers using them on the front lines?

FTAdviser spoke to four different advisory firms to get a sense of which systems they use - and which they don’t - and why.

Darren Arnup, office manager at Almary Green Investments

The Norwich-based IFA uses Intelligent Office from Intelliflo, a system selected after sending out questionnaires to various providers at the end of last year, based on deficiencies identified and additional requirements.

“IO has helped us to ensure that work is processed in more of a prescribed way – so that procedures have to be followed otherwise the income cannot be added to the record,” states Mr Arnup.

“Income reconciliation has been significantly quicker and slicker than previously, with the EDI [Electronic Data Interchange] statements generally reconciling themselves in the main, and the fact that our bank receipts can be imported to the system to provide a check that the money has actually reached our account, has reduced or highlighted errors along the way.”

The internet-based system has also helped the firm’s ‘green’ aspirations, as advisers can access the systems wherever they are, provided there is an internet connection, and scanned documents have been move to cloud storage.

“It is not perfect by any means, and there are some aspects that we are either waiting for or pushing for, but it has made a significant difference to the way that we work and appears to be a massive investment for the future growth of the business.”

Daren O’Brien, director at Aurora Financial Solutions

The London-based adviser uses a Microsoft Word-based system for all file storage, inputting the financials into spreadsheets specifically designed by its accountants. “Therefore we haven’t brought an off the shelf package or any ongoing licences that we’d be tied into for ever,” Mr O’Brien adds.

“We’ve previously used three to four software packages between us at other firms and none seem to do the full job, as well as helping with the data needed for the FCA reporting requirements.

“They do seem to create work, rather than be a tool for simplification, and with most clients on some form of online system or platform, we can run reports using that companies’ report writing services.”

Mr O’Brien adds that when the firm was established, the directors did not want to pay another software firm for back-office support when a junior could be employed at almost the same cost.

“We don’t feel that our system stops our client focus at meetings and all documents are available from our server with a simple internet link from anywhere anyway.

“It may not be “cutting edge” but it works and everyone here knows how our systems work. I’m not convinced that an outsourced data storage system would save too much time for us, but I do know that it would definitely add to our costs and our clients charges.”

Alan Solomons, director at Alpha Investments and Financial Planning

The London-based adviser recently moved from its Dynamic Planner system from SimplyBiz to Distribution Technologies’ version to access live valuations on Transact and Old Mutual Wealth investments

Mr Solomons adds that he can now select the rate of inflation used for the cash flow forecast to age 99, whereas the SimplyBiz version only uses 2.5 per cent which is unrealistic for long-term inflation (5.9 per cent over the last 60 years).

“Prior to that I had tried Intelligent Office which seemed not to be a pure Windows product. Their support was poor, replying to emails two or three days after I sent them, by which time I had no idea what the call was about,” states Mr Solomons, adding that the software was obstructive rather than intuitive.

“So I changed to Plum, which seemed to be much more Microsoft user friendly, although I found that it was also not intuitive. Bad points for both IO and Plum were no cash flow modelling and having to re-key into another product is a waste of time as well as being a source of potential error.”

Mr Solomons states that Dynamic Planner’s apps for risk assessments means clients can fill them out themselves and their are plans for the system to allow clients to update their fact finds, also saving the firm time.

“Cash flow planning and inheritance tax planning can be done using Dynamic Planner, which uses the fact find data to prepare graphs and reports that clients can relate to easily.

“I use it in meetings with a data projector displaying the graphs on the wall, which helps to involve the client appreciate what I am telling them. They become more aware of the implications of their decisions on the basis of facts, rather than prejudice or what a friend in the pub has told them.”

Phil Marten, independent financial adviser at Octagon Consultancy

The Bristol-based IFA practice uses True Potential as its main system, with Mr Marten citing the real time valuation system, secure messaging and ease of use on an iPad, as reasons for the choice.

”Instead of requesting valuations over the phone, and waiting for confirmation by fax or in the post, we can download a value instantly. If a client calls, we can go in to their portal and try to answer their questions immediately,” he adds.

Mr Marten says the technology has helped with client engagement across the board. “I would not bracket anyone in an age group, as I have clients in their 70s and 80s who use the technology, and I have clients in their 30s who are so busy that they never log on and do not want to.

“Where before, we were lucky to have one meeting in a year and sometimes lost contact with each other, they can log on to their site via an app at any time and see how their investments are performing. We can also use this technology to help with data collection, as clients update their own fact finds to reflect changes in circumstances.”

Q1: What does the EDI in ‘EDI statements’ stand for?

• Educational Data Integration

• Electronic Data Interchange

• Effective Distribution Information

Q2: Which two back office systems did Alan Solomons use prior to the current setup?

• True Potential and Intelligent Office

• Intelligent Office and Plum

• Plum and Dynamic Planner

Q3: What does Daren O’Brien state you can get for the same cost as back office software?

• A back office robot

• A paraplanner

• A junior employee