Advice software based on traditional modelling approaches cannot cope with the massive surge expected in scaled advice and the trend towards lower advice costs.
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 where possible, which automates the repetitive modelling and analysis to produce finished SoAs in minutes.
Optimisation is the “game changer” financial advice software needs to clear a path toward greater efficiency, and also greater quality, by defining all variables that can affect each strategy and then automatically measuring them for the best result in just seconds.
But optimisation is still flying under many advisers’ radar. Perhaps because the differences between “modelling” and “optimisation” software resemble an improvement in automotive engineering – it is concealed “under the hood” and the benefit is not obvious until taken for a proper test drive. Only then do advisers discover that optimised advice engines deliver:
- More efficient scaled advice delivery
- Better analysis
- User friendly tools with potential for client use
- Opportunity for web delivery and self-service SoAs
This paper discusses optimisation’s impact on providing advice and adviser business models, as a facilitator for scaled advice.