Speaking to ifa following the Xero/ Midwinter roadshow in Sydney yesterday, Midwinter managing director Julian Plummer said cloud-based technology was fundamentally changing the financial advice process.
“Being able to have this real-time information on your client is a real game-changer and also enables the adviser to meet the ‘know your client test’,” Mr Plummer said.
“No one can ask an adviser ‘do you know your client?’ when they have real-time cash flow information rolling in and you know where they were last Friday.”
Mr Plummer was referring to the ‘cashbook’ product offered by accounting software provider Xero, which he said was an antidote to problems associated with attaining sufficient information about clients in initial meetings.
“Advisers have struggled historically with the client fact-find, and clients see it as homework so it never gets done sufficiently,” he said.
Mr Plummer said that while, previously, advice was “static”, advisers are increasingly moving to “constant, moving and evolving models” – a development he described as a “watershed moment”.
Xero managing director, Australia, Chris Ridd told ifa that his colleagues colloquially refer to the technology as the “truth serum” because it allows accurate information about clients to be accessed.
“When filling out traditional information fact sheets for their advisers, often clients will either lie or simply won’t know the answer, leading to a lifetime financial strategy based on inaccurate information,” Mr Ridd said.
“All the changes in the industry in terms of FOFA and commissions being banned and the move to fee-for-service means an adviser has to get as close to their client as possible – well, nothing is more sticky than being able to say, ‘this is where your spending has been and here is a spend management and budgeting plan’,” he added. “That’s why you are seeing financial planners interested.”
I enjoyed some of the speakers. Mr Plummer was rather hard to follow and looked a bit unsure of himself. Product looks like it won’t give them the success they are hoping for. Next too xero it looks very amatuer.
I agree. After testing it I was left frustrated by it. Slow, cumbersome and visually unappealing. Integration is pointless.
I don’t really see why I would use it. They have done some great things in the past but this is not a watershed moment I found the whole roadshow of theirs uninteresting. Just another distraction.
Having viewed and tested their service it is slow, complex to use and just adding xero (all hype) is not some game changer. How about developing a true solution that adds value to the advice channel. Just another over price backward thinking bolt-on,rushed out the door software solution – NEXT!
Hi Stephen
I’m the Senior Account Manager at Xero working with financial advisors nationally.
Over 350 financial advisors are currently using non-GST Cashbook – a partner only version of Xero – as a cashflow and budgeting tool with their clients.
Cashbook is not Xero Personal. It is essentially Xero Business edition with invoicing, payroll and GST switched off. It is available exclusively through Xero Partners (book keepers, accountants and financial advisors) and is a great way for advisors to amplify their advice and for clients to gain visibility over real income and expenditure and personal cashflow.
If you would like to know more about cashbook then please do not hesitate to contact me.
As a (business) customer of Xero who has recently had the personal service turned off, my understanding is that Xero has ceased offering any of its products to consumers. So I don’t see how integrating Xero offers any benefit to FPs. Maybe I’m missing something?