Today I was asked by a client to state where I think the market for Financial Services Software will be by the end of 2012. While such predictions are normally reserved for our new year blogs, I thought it might be fun to get in ahead of the game on a few predictions.
Being AT8 I thought I would make 8 predictions:
1) Portals will evolve – specifically re-writing their quotation systems
I have started with a safe prediction as regulation will force change in the portal market. The EU ruling on sex equality will force a rewrite of protection systems while RDR will force changes to Investment and Protection quotes. The drive to support the more stringent Independence rule will potentially get more providers on to the systems to make whole of market analysis easier
2) New financial planning software fragments will appear
With devices like the iPad now quite common place in the adviser community we expect more financial planning apps that exist as isolated sales aids appear. This process has already begun with applications like LifeCash being launched but we expect more to come to market.
3) The larger back office systems will bring more product modules to market (but later than originally anticipated)
We have had promise of mortgage systems, client portals and improved financial planning tools from the big vendors for several years now. Now is the time for them to deliver against these promises. Avelo have stepped up to the mark this summer with the launch of their client portal and their financial planning tool and we expect these to evolve while others like Intelligent Office will deliver their offerings
4) Fee charging modules will be rewritten
The full impact of the move to fee charging will become clearer and the large software houses will bring out new improved fee capabilities.
5) New entrants will come from overseas
We have written about the ambitions of BrokerCRM from Ireland and Figlo from Holland to enter the UK market. The UK financial services market remains one of the largest markets in the world and is undergoing unprecedented levels of change. This represents a huge opportunity for overseas vendors – expect to see several new entrants.
6) New business models will appear
Business models between Software houses, service providers, networks and platforms will start to mix with confusing results and many new pricing models.
7) Client portal capability will be more widely deployed
Client Portal functionality that allows secure communication between adviser and client and shared access to data and documents will gain acceptance and popularity.
8) Platforms will undergo pricing pressure
This is of course already happening but as costs become more transparent this will only increase. Platforms are fighting back trying to get people to focus on service rather than price but while it is the Client that is paying the fee and the adviser than gets improved service it is right that price stays a key focus unless adviser fees or service to the end client can be demonstrably improved by the higher charges.
The frightening reality is December 2012 is not that far off and things are not changing fast enough in the software market to meet the demands and expectations of advisers. I had hoped that I would be writing about a single integrated solution being available to advisers that covers most of not all their IT needs from financial planning to Client management. This reality is frustratingly still just out of touch but maybe soon could be achieved.
