Provisio has identified a number of areas in which traditional modelling is letting the industry down, particularly when it came to the efficiency of providing scaled advice.
Provisio’s newly released ‘optimisation’ software is said to be capable of reducing statement of advice (SOA) modelling from one to four hours to 15-30 minutes, with a dramatic reduction in the cost of advice.
“Advisers cannot profitably continue spending one to four hours producing a SOA using modelling software that has been designed for comprehensive advice. They need a solution designed specifically to optimise advice queries…to produce finished SOAs in minutes,” the white paper said.
In relation to the data input, the white paper said: “With no indication of their potential gain, a client may not be willing to pay the fees required to cover the data entry overhead”.
The key to the process is that “optimisation lets advisers begin with the desired strategy in mind, such as a target retirement income level”, the white paper said.
Scaled advice may involve more straight forward questions, making it more difficult to justify the time usually required to complete a SOA using traditional modelling software, according to the white paper.
The paper pointed to “significant data input” requirements, “trial and error testing” and “back-office analysis” as being three areas in which their software could dramatically reduce time spent.
“Currently, scaled advice only accounts for 25 per cent of SOAs but is expected to grow dramatically,” the white paper said, citing Provisio’s parent company Rubik Financial and research firm Rice Warner.
Rice Warner research released in July found that a large increase in the take-up of scaled advice was expected.
