AGBA launches technology strategy to improve Goals Based Advice
Rebecca Jacques
AGBA invites goals-based advisers to participate in building better software as the industry strives to build better results for consumers and advice businesses that are affected by the legislation changes coming with regards to Limited Managed Discretionary Accounts.
“The industry talk around today’s goals-based systems is that most only solve part of the problem. Many are vertically integrated in other apps and don’t connect to mainstream tools. Those that do exist have been designed by institutions to deliver their version of goals-based advice,” said Rebecca Jacques, AGBA General Manager.
For the independent and non-aligned advice market now is the time to get involved in building their own software solutions or face being left too far behind their aligned and institutionally-owned counterparties. With the cost of technology continuing to fall, the barriers to building solutions outside of organisations with large balance sheets, has also fallen. Thus making it achievable for much smaller businesses to work collaboratively in building a goals based engagement and advice platform.
AGBA has begun working with members and innovators to deliver an adviser designed technology framework centred around helping clients and advisers engage better on financial goals across the entire advice process. Importantly, this framework will integrate with mainstream practice CRMs and financial planning tools via an open API. In so doing it will work alongside traditional advice processes allowing advisers and licensees to customise the goals based processes to best suit their clients and their practice.
“Our members are asking for better engagement tools that help clients understand and own the link between their goals, their behaviour and the advice they get. Clients and advisers will jointly explore, track and monitor their goals, dynamically recommend portfolios designed around these goals with connectivity to platform and mainstream FP software for SoA production and CRM updates.
“We plan to have a prototype available to stakeholders shortly, with members using the platform from January 2019. Integration meetings have already started and the response has been very exciting.
“To align this strategy with mainstream technology, we have also begun a 12-month program looking at better efficiencies for XPLAN users who want to be more goals aligned. This will be expanded over time to include other mainstream tools,” said Ms Jacques.
AGBA is working with XPLAN consulting firm PlanFocus on the program to collaborate and implement goals-based customisations for XPLAN. Participating members will receive a fully comprehensive fact find, SoA template and wizard containing some core goals-based design elements, with scheduled updates planned during the year.
Rob Corben, Director of PlanFocus, says that the initial version will contain adjustments to the fact finding process as well as innovative modifications to the wizard and template structure to better align advice strategies with client goals.
“We will also look at including goals based tasks, threads and assumption sets that better support a goals-based approach,” said Mr Corben.
“If the independent marketplace is to remain truly competitive it needs to start owning the development process of important tools and applications. Our members have been talking and waiting for this development for years. By working collaboratively AGBA members are able to own this development process and ensure that it works for the broader marketplace rather than just one specific organisation.
“At the end of the program, members will have a best practice XPLAN site designed by the expertise of the leading thinkers in goals-based advice,” said Ms Jacques.
