What are the Factors to Consider Before Developing Financial Planning Software

Published by

Sep 2, 2021

Developing a financial plan allows financial advisors to have a comprehensive understanding of their clients. This understanding is not limited to only their financial needs but also their family and social beliefs and what money is actually meaningful to them. This understanding empowers them to manage money effectively for their clients and guide them with financial discipline. However, creating a comprehensive and meaningful financial plan requires good financial planning software.


According to the reports, the market size of financial planning software is currently blowing the roof.Some common challenges that are usually faced by advisors with different financial planning software include:


  • Lack of intuitive user interface for data entry
  • Data entry that is time consuming
  • Complicated reports and recommendations are unclear
  • Lack of flexibility in software
  • Obviously, in choosing financial planning software, you need to find software that discusses this challenge. Lets understand what this challenge means.


Intuitive user interface

To interface the software user to be intuitive, it must pass the test on several sides. If I make only a retirement plan, why not have all data entries on one screen so I dont need to go back and forth to check what is included. As a financial advisor when I am evaluating financial planning software, software design must allow me to pre-populate the default value that is meaningful to evaluate software quickly. Although there can be a long list of requirements for an intuitive user interface, I will expect software designers to have thought leadership for an intuitive user interface.


Data entry

Data entry may not spread more than a few screens. Labels for different data entries need to be clear and have useful information displayed there, not click on different screens. In fact, there shouldnt be a click at all.


Reports and recommendations

Some financial planning software companies measure the sophistication of their software based on the number and length of the report. Some reports can run hundreds of pages. Unless an advisor gets compensation based on the weight of the report, they are not really worth the effort. If an advisor has difficulty understanding these reports, how do you expect clients to understand? Simplicity and direct recommendations are very important to make reports that can be followed up.


Flexibility of Financial Planning software

An advisor is related to clients belonging to different age groups, income and level of wealth, their knowledge of financial services, and their current and future needs. So, if the software requires the same monolith time lane regardless of the client profile, it is not the use of efficient financial advisor time. Some clients have complex financial needs and cash flow-based financial plans may be suitable for them. Conversely, some clients may have simple financial needs and simplified financial plans. For them, goals-based financial plans might be more appropriate. In some cases, client needs can develop from purpose-based plans to cash flow plans. That does not mean the advisor must change the software or re-enter the data again. So, flexible financial planning software needs to adapt to advisory needs, not vice versa.


Financial Planning software is designed to overcome this challenge. With one simple choice, it automatically adapts to the client situation and advisory needs. If you need to overcome some particular planning fields eg. When and how to take social security benefits, you can produce a plan that maximizes social security benefits within 10 minutes. This software offers cash flow and financial planning targets. This includes the most commonly used financial planning modules: Pension, Social Security, Higher Education, Insurance, Profiling Investment Risk and Asset Allocation, and Plantation Taxes. Next, software is free, safe, and protected. This Financial planning software functions on computers and handheld devices.