Yesterday, a CBA announcement heralded the introduction of IRESS’s scaled advice software, Xplan Prime, and the Xplan software to advisers beyond its Count Financial and business and private bank networks.
“This investment in technology will help us secure and enhance the financial wellbeing of our customers by ensuring that all Australians have easy access to quality and affordable financial advice,” said CBA executive general manager, advice, Marianne Perkovic.
However, speaking at the ifa Business Strategy Day in Brisbane yesterday, Julian Plummer, managing director of rival software provider Midwinter Financial Services, said “mandating software” results in key business decisions being made in “head office” instead of in practices.
“Software [in the financial services industry] is chosen by the few and used by the many,” he said.
Mr Plummer – who was formerly head of quantitative research for CBA’s licensees – said it is an example of the sorts of control issues causing many advisers to seek alternate licensing arrangements.
“Mandating software is what is leading to a lot of complaints; giving advisers choice removes a lot of pressure on licensees,” Mr Plummer said.
He said most licensees choose software for their advisers using a ‘tick a box’ approach that does not necessarily align with the needs of some advice practices.
A statement from the Commonwealth Bank said it will be the first Australian company to use the Xplan Prime product for scaled advice services.
The statement also said IRESS was selected after a tender process was concluded which involved “a number of leading domestic and international financial planning software vendors”.
Midwinter is head and shoulders above Xplan and others who simply want to track the product FUM and pretend its generating SoAs with real advice. Midwinter provides clear strategic advice options that don’t have to involve any product; dealer groups that cling to the old model will be left behind and at greater risk of litigation. And no, I don’t get paid to say this, take the trial and see for yourself.
they were previously using an abacus and beer coasters for most financial planning strategies and SOAs, so this is a big step up.
I thought they were using divine wisom, the bible, astrology and numerology?
Mandating software is fine as long as the dealer group can support it. I shifted dealer groups just over 2 years ago. My previous dealer group had xplan as well, but didn’t have a clue when it came to support. Their idea of support was look it up in help and they made no attempt customise X-Plan. Hence I HATED X-Plan. My new dealer group fully embraced Xplan has the support available and has customised it for use by its advisers. I now LOVE X-plan, in fact to such an extend we are now paperless because of X-Plan.
Mandated software comes down to dealer group support to work effectively.
Besides why would I want to pay the exorbitant license fees all the software providers charge for single license users.
I think Mr Plummer has missed the point.Perhaps Mr Plummer may well be biased considering Xplan and not Mid winter is used by over 80% of Financial Planners. Maybe if his former Employer CBA, had a system such as Xplan in place when he worked for them they may not have been in the strife they currently are with Investor complaints. You see Mr Plummer, the ever increasing responsibility being placed on Licensees to manage their Adviser network in a compliant manner, necessitates a system such as Xplan in order to be across their Advisers business. To allow the use of all or any software does not allow a Licensee to effectively carry out their responsibilities. Licensees who choose to not mandate software are making a rod for their own back.
They were previously using hieroglyphics so this is a great change!