APRIL 2021
EDITION

VIEW ONLINE
SUBSCRIBE

Register with PP

Newsletter, Jobs & Event Alerts

Latest

Cashflow modelling potential under utilised

7 January 2021

Only a third (34%) of advisers are offering all their clients cashflow modelling, despite almost three quarters (70%) agreeing cashflow modelling technology is the most popular tool for helping clients meet their long-term goals. 

A new poll by Intelliflo and i4C found that almost nine in ten (88%) advisers and paraplanners believe that cashflow modelling helps demonstrate the value of advice to clients and that clients feel more engaged in the financial planning process as a result of the technology.

Two thirds (67%) said that cashflow modelling has helped to reduce client worry during the pandemic and almost all respondents (92%) said it helps clients to understand the effects of market movements on their future plans.

However, the findings of the poll showed that nearly one in ten (8%) don’t offer cashflow modelling at all, with a quarter of this group citing time as the greatest barrier.

Furthermore, a third (34%) of advisers and paraplanners use cashflow planning less than once a year and less than half are using it at significant milestones such as retirement (39%), when a client’s lifestyle changes (36%) or when they receive a lump sum (24%).

Nick Eatock, CEO, Intelliflo, says“Throughout life there will be numerous events that affect a client’s assets and long-term plan. Perhaps none more so than now. These findings tell us that advisers appreciate the value of cashflow modelling in demonstrating the value of advice and helping their clients plan for the future but are yet to realise its full potential. Cashflow modelling is a great example of the powerful combination of people and technology in delivering advice.”

Gareth Kerr, head of sales proposition, Intelliflo, adds: “Although cashflow modelling was built for times like these, there is still some way to go before it is adopted widely and to its full potential. Comprehensive, integrated tools aren’t necessarily labour-intensive and three-quarters (76%) have found greater efficiencies by integrating their CRM with their cashflow tool. We’ve found that financial advisers getting the most from cashflow modelling are using it live with clients whenever there is a shift in long-term plans to monitor and plan for what lies ahead.”

Professional Paraplanner