Cash flow modelling systems that use real time data are being developed by the dominant firms in the sector and could soon launch to market.
Representatives of CashCalc, I4C, Prestwood and Voyant told advisers at the third Great Pensions Debate in London this morning (8 November) systems that give an immediate, accurate picture of a client’s finances would soon be a reality.
Mark Harman, chief executive of I4C, said its cash flow modelling software was already able to access and use this data, but it was not yet a part of the service offered to advisers.
"Clients will be demanding it. It is the way the world is going," he said.
Julie Lord, director of Prestwood, the company behind the Truth software, said her team had also established that much of this data was readily accessible but they had received negative feedback from some clients about implementing its use.
She said "older clients didn’t like it" as some were scared to allow this kind of access.
Bob Freeman, chief operating officer of Voyant, said his company’s systems in the US were already pulling bank transaction data to be used in cashflow modelling.
However, the coverage of the app the company used – Yodlee – was not currently sufficient in the UK for it to be used in this market.
The discussion also covered areas where technological advances would improve an adviser’s cashflow modelling experience.
The panel said bringing clients closer to the cashflow software would be the next step to enhance their engagement and understanding.
Mr Harman said client portals were "inevitable".