Defaqto has launched a fully integrated cashflow modelling module across its financial planning software Engage.
The new module is the first of its kind to work as an end-to-end financial planning tool, enabling advisers to forecast different scenarios to project their clients’ potential standard of living.
The main features include risk profiling, taxes, retirement options modelling and stochastic stress testing. It includes anticipated outgoings, income, investment and assets.
The fintech said advisers using Defaqto Engage will be able to seamlessly embed cashflow modelling into their advice process without rekeying. Once a plan is agreed, the adviser can generate an automated report showing the forecast and selected options.
According to Glenn Porter, chief commercial officer at Defaqto, the cost of living crisis has made cashflow modelling fundamental.
“Advisers will be having important and potentially difficult conversations with clients,” said Porter. “Those conversations will benefit from the support of technology that uses advanced automation, integration and a consistent methodology that not only removes complexity and creates time efficiencies but also supports smarter financial decisions.”
Porter said the new module was part of the firm’s investment and innovation plans in 2023.
He added: “It makes it easy to show how different scenarios will impact a client’s lifestyle each year, pre and post retirement, considering their income. We will continue to respond to the key challenges facing advisers and their clients, making mission critical elements of the advice journey easier to navigate with accuracy, compliance and suitability at the forefront of our technology developments.”
