The new integrated model portfolio service from Intelliflo will dramatically improve how advisers can operate client portfolio reviews.
Having seen the initial release, which will go live with advisers imminently, there are three points that really stand out.
These will deliver enormous benefits to both advisers and their clients.
Firstly the pricing of the model portfolios is capped at £1 plus value-added tax per client per month, subject to a maximum of £70 plus VAT per firm per month.
This is a dramatic reduction in the price of such services.
While initially only available from Invesco, Intelliflo says they are actively negotiating with many other model portfolio providers.
Given Invesco’s first-mover pricing it is hard to see how any alternative model providers can charge significantly more.
The next major benefit is the ease with which the software compares existing holdings with the switches needed to adopt the model and creates all the necessary supporting documents for the client.
This should significantly reduce the amount of time normally taken by such tasks.
Arguably, however, the most impressive element of this service is the way in which the recommendations are delivered to the client.
Where the integrated model portfolio service has been used and recommendations created, this is populated to the home screen of the individual client’s personal finance portal, the client-facing online/mobile phone service provided to Intelliflo’s adviser clients.
From this, the client can then review the recommendations and in literally just a couple of taps, accept the recommendations and give instructions for the switches to take place.
A summary of the necessary changes is then communicated to the platform, although in the next iteration for some platforms this will be possible through an electronic application programming interfaces link.
This is a major step forward in business efficiencies for advisers and reduced investment cost for consumers.
Ian Mckenna is director of the Financial Technology Research Centre