The independent financial information, ratings and fintech business, Defaqto has launched cashflow modelling as part of its ongoing investment into its market-leading financial planning technology, Engage.
The fully integrated cashflow modelling module is the first of its kind to work as a part of an end-to-end financial planning tool providing advisers with a consistent methodology throughout the advice process.
The new module allows advisers to forecast different scenarios to project their clients’ potential standard of living.
The main features of the module include:
· Risk profiling
· Taxes
· Retirement options modelling
· Stochastic stress testing (from Hymans Robertson)
The tool includes anticipated outgoings, income, investments and assets. Once a plan is agreed, the adviser can generate an automated report showing the forecast and selected actions.
Glenn Porter, Chief Commercial Officer (CCO) at Defaqto, said: “In the current economic climate with the ongoing cost-of-living crisis, cashflow modelling is, arguably, more fundamental than ever before. Advisers will be having important and potentially difficult conversations with clients. Those conversations will benefit from the support of technology that uses advanced automation, integration and a consistent methodology that not only removes complexity and creates time efficiencies but also supports smarter financial decisions.
“Our new cashflow modelling module is a part of our investment and innovation plans in 2023. It makes it easy to see how different scenarios will impact a client’s lifestyle each year, pre and post retirement, considering their income. We will continue to respond to the key challenges facing advisers and their clients, making mission critical elements of the advice journey easier to navigate with accuracy, compliance and suitability at the forefront of our technology developments.”
