CashCalc founder looks to larger advisers for growth

The software has traditionally been most popular amongst one- and two-person outfits but is gearing up for a wave of  consolidation among larger advice firms.

Bought in May 2021 by FE, CashCalc - which made a profit in its ninth month of existence - was serving a majority (81 per cent) of small advice firms at the time of its sale.

“Predominantly until now, CashCalc has been one- and two-man bands, or one woman- and two-woman bands,” Adams told FTAdviser.

“That’s because a small business owner can make the decision there and then. He or she can look at a software and think ‘actually I like this, I’ll get it’.

“But that figure [81 per cent] is probably about to change, because some of the biggest firms are starting to say ‘we need to have consistency across our organisation, so let’s take it to every adviser and not just pockets’.”

The software provider, famous for its cashflow modeller tool, signed a deal with Sandringham at the end of last year, which has 180 IFA partners and advises on assets of more than £2.5bn for 10,000 clients.

We have thousands of users who use CashCalc every day now. So naturally, we can't be quite so agile and make changes suddenlyRay Adams

The Huddersfield-based firm was already using CashCalc throughout pockets of the business, but made the decision in December to run the software for every single adviser in the organisation.

“That’s quite a big customer, because there’s close to 200 advisers,” Adams explained, before citing Fairstone as another of the firm’s larger customers.

Before its acquisition by FE, CashCalc had eight developers but now its has 140 at its disposal, which gave Adams the confidence its could make the switch to scale.

Though Adams did note it could now take a month rather than an afternoon to make a development change.

But he was quick to explain this shift in timescales was a product of the number of end customers it has today, compared to when it started.

“If you've got 10 users, your quick changes affect those ten users. But as you grow, you should get a new level of responsibility. We have thousands of users who use CashCalc every day now. So naturally, we can't be quite so agile and make changes suddenly.

“Joining FE FundInfo, which already had thousands of users, has already given me and the team lots of experience about how to manage improvements and changes.

“They’ve got lots of process and systems in place, so as we get bigger with more users, we can keep pace with the changing needs of security and access. It’s all behind-the-scenes, boring stuff but it’s really important.”

CashCalc now accepts around 2,000 direct debits, some paid by one registered user all the way up to some paid by firms on behalf of 200 or 300 registered users.

Around 20,000 users are registered, but this includes members of the public who don’t work with an adviser.

‘My brain still thinks like an adviser’

One thing Adams said the advice profession needed more of is software providers which think about the start of the customer journey, and not the end. 

He said he felt as though advised platforms focus on the end of a client journey - ie when they’re ready to invest - and not on the help advisers need at the start.

“My brain still thinks like an adviser,” said Adams, also noting his various other hats - including those of a technology founder and an advised client.

Having launched a digital onboarding service a few years ago to build on its suite of adviser tools, CashCalc’s latest addition was an extension of its original cashflow modeller.

Our customer service levels haven’t changed at all. We’re getting the same number of callsRay Adams

Initially resistant to developing a gross cashflow modeller alongside its net cashflow option for fear it would give “the allusion of accuracy”, Adams caved after finding one or two in 10 cases saw a client need for the tool as the software firm grew.

Some 10 per cent of the provider’s client base use this tool now. It takes 25 as opposed to 20 minutes to complete, but the fintech founder was adamant it was no more complex.

“Our customer service levels haven’t changed at all,” he said. “We’re getting the same number of calls, which says to me that we’ve delivered a tool which is just as easy to use.”

Adams had plenty planned for the future of CashCalc, though he was wary the software provider could not do it all.

This is why he was looking to embed an attitude-to-risk questionnaire, rather than task his team with building one. 

Initially, we said we’d do everything in-house. But that would stifle competitionRay Adams

“There’s already some good tools out there, so it makes sense to integrate with them,” he explained. “We don’t want to build everything. Initially, we said we’d do everything in-house. But that would stifle competition. You have to allow the ecosystem to bring new entrants onboard.”

The provider is also working on ESG-related features, as the once optional conversation topic fast becomes a necessary point of discussion for advisers and their clients.

Adams is also exploring how CashCalc will link to advised investment platforms. 

“I want an ‘invest now’ button in CashCalc so advisers can go straight to an investment platform to make or modify an investment,” he explained.

By clicking that button, the founder said advisers could then see various platform logos pop up before clicking through to the relevant one.

“If we can link these processes, we’re making the profession more efficient,” said Adams. “I don’t want to annoy the client, I want to blinkin’ delight them.”

ruby.hinchliffe@ft.com