So the much hyped True Potential system has rolled out to the Positive Solutions sales force making front page news on the way.  I can’t remember when a technology story last had this level of prominence and it is a testament to the high profile of David Harrison and his team and indeed the new and fresh approach to a business model for supplying technology.

However with this prominence came the need for a high quality delivery, on time and to expectations, and if the press is to be believed this has been far from the reality. The system is criticised for its robustness and the counter intuitive approach to business.  How should potential future customers view this launch?

Well it should really be no surprise that there were problems with the first delivery of such a solution, especially when it is of such scale.  The breadth of the True Potential solution is significant and is one of the few solutions that provides and front and back office solution, and with this breadth came obvious risks.  Further, the old adage that you can never please all of the users, all of the time comes into play – some unhappiness is inevitable with change.

Yet it must be unnerving for potential clients looking to make a move and not all solutions have as big teething problems.  When Home of Choice launched their solution they built it in 3 months and launched with few, if any problems.  The solution didn’t have the functionality of the True Potential but nevertheless was an impressive project, proving software builds don’t have to have issues with them.

However as an outsider looking in, the True Potential issues, although probably very real, did not appear huge and I am sure will be ironed out.  Therefore I would caution any over reaction to the press stories.  The nub of any decision to use True Potential has to be based on their unique business model.  If this model suits distributors then they should move ahead but ensure they have the appropriate guarantees from True Potential.  If the distributor has concerns over the business model, and many do, then there are plenty of strong alternatives on the market.

Electronic factfinds are tedious!

One of the most enduring problems since the dawn of electronic solutions for advice at the point of sale has been the almost insurmountable difficulty in capturing client data.

Ask a successful adviser if they use electronic factfinds when available, the majority will say they do but not during a client interview – most will prefer to capture the data on paper and then transcribe it to the electronic solution back in their office.

The inhibition to use electronic solutions is deeply ingrained – most adviser firms with whom we deal, treat the use of electronic factfinds with caution.

So why does this phenomenon occur? In the main, there are three major issues raised by advisers; the first is the disruption the use of technology brings to the face-to-face interview and the distraction and lack of control to the interview process; the second is the clunkiness of the solutions currently delivered by the software vendors; finally, the underlying technology does not quite meet the need of the advice process, in terms of being able to collect easily data away from the office and at a client’s home or office.

So what’s on the horizon? Last week at the Consumer Electronics Show (CES) in Las Vegas a number of interesting developments were launched by major vendors like Microsoft and Intel. Bill Gates talked about Microsoft enabling simpler user interfaces, using gestures, eg flicks of the hand, pointing of index finger etc. – he admitted that Microsoft had overplayed the importance of Tablet PC (a PC with a pen and touch screen), a technology actually used in the UK by Positive Solutions. The next important announcement was from Intel – they have predicted that within 5 years, the roll-out of internet capabilities with either 3G (HSDPA) or WiMAX (a new style of high-speed wireless) will revolutionise the ‘personal internet’ – this would enable high-speed data communications almost anywhere.

With the combination of advanced gesturing, easier user interfaces and high-speed, anytime, anywhere communications the potential for natural, unobstrusive data capture using technology at the point-of-sale moves very much closer.

Compare the very natural way of using Apple’s iPhone mobile ‘phone with a conventional PC keyboard, and it’s like comparing Fred Flintstone’s car with a Bugatti Veyron – personally, I can’t wait.

A Happy New Year to all readers of our blog – this section of our website is becoming a clear favourite of visitors to AT8, so we will strive to continue to add our views and perspective over the coming year.

So, here I am looking out of my window, on a cold (getting colder by the minute!) Wednesday morning – waiting for the snow to arrive, according to the Met Office.

I always struggle on the first real day back from an extremely enjoyable but slightly over-indulgent Christmas and New Year break, having to re-engage the grey matter and fire up the thought processes to kick start another year.

2007 was an event-packed year, seeing the Regulator generating significant market discussion, a credit squeeze, a bank in trouble and a mortgage market in slowdown.

What’s in store for 2008?

Well, from our perspective there’s a lot:

The FSA has already slipped the Retail Distribution Review timetable, but the debates surrounding this topic will rattle on until the next output from Canary Wharf;

The Mortgage market retreat seems to be continuing, with new borrowing down and house price values falling – it’ll be interesting to see if the interest rate reductions will stall the decline;

As we’ve discussed in previous blogs, 2008 is going to be a fascinating year for the solution suppliers – a year where each vendor will undoubtably re-assess their market position and whether the strategy of pushing into other competitive areas is sustainable – we’ve already seen towards the end of 2007 some u-turns – I suspect further changes are afoot and maybe some further consolidation is inevitable.

Finally, with the FSA’s drive toward Treating Customers Fairly (TCF) gaining significant momentum, practitioners and alike will be looking for solutions and processes to enable compliance without significantly increasing the cost of advice – something that will require further automation of the advice process.

More next week.