Some 90 per cent of financial advisers believe integrations between software providers are important to their financial planning process, according to a survey by FE Fundinfo.
Despite this, data from FE CashCalc found only 28 per cent of financial advisers currently have an active integration between their FE CashCalc account and back-office system.
It raises the question why so many financial advisers are not integrated; especially between their cashflow planning tool and back-office system.
Efficiency gains and improved data integrity were cited within the FE Fundinfo survey as the main reasons why financial advisers decided to integrate the software they use.
The data found that of those 28 per cent that did integrate with their back office, nearly 300,000 pensions, investments, incomes, addresses and other information were exported from FE CashCalc to a back-office system in 2022.
Steve Mitchell, head of adviser proposition at FE Fundinfo, said: “Integrations have long been a hot topic of discussion, and more integrated technology has typically topped the wish list of many financial adviser surveys in recent years.
“So, although the data is surprising, it’s equally important for us to highlight that the number of financial advisers who are integrated is at a record high.
“We must therefore continue to work together as a profession to promote the value of integrations, whilst also working hard to evolve and improve what is available.”
The survey, which was conducted between December 1, 2022 and January 27, 2023 and received 200 responses, also revealed that those who have integrated their account with their back-office system have, on average, 32 more clients within FE CashCalc than someone who has yet to integrate.
Mitchell said: “Setting up the integrations themselves can be a barrier for some advice firms without expertise in house. In addition to developing the integrations themselves, we’ll continue to enhance the support we provide, from educational videos to 1-to-1 training sessions.
“Because if we can help and support those who are not yet integrated to start integrating their software, there is a huge opportunity for the profession to provide a more efficient and effective service.”
sonia.rach@ft.com
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