How to increase ROI with financial planning software

How to increase ROI with financial planning software

A client will typically want his financial adviser to explain in simple terms the return on investment (ROI) on his or her fund or package of investments.

Equally, all advisers are looking for ways to create positive client experiences and cement the adviser-client relationship.

Financial planning software aids this relationship and smooths the path to a more holistic approach to explaining the complexities of different strands of investment. For advisers, there is also the question of whether or not their IFA software can also help to increase their ROI.


As the Financial Conduct Authority continues to strengthen its regulations, even ROI can be impacted. Advisers will want to take a look at the available software, such as IFA software by, to improve their administration and returns. The other effect will be to improve the adviser-client relationship. This is becoming more difficult in an era of growing client bases, which puts pressure on the amount of time an adviser spends on individual plans.

How can ROI be influenced? A swathe of fiduciary rules are being imposed by the FCA, and firms are concerned that these new controls could cause ROI to fall.

Return of Investment

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IFA software is developing to combat this problem, especially in the area of data gathering. This and other technological changes to the interface with clients calls attention to the need for software initiatives to protect against the erosion of ROI.

It is important to realise that in the financial advice industry, ROI must been seen as added value and not necessarily a simple monetary value.


Although most firms understand the importance of financial planning, calculating its potential influence on ROI and isolating that can be challenging. Firms may be aware of the benefits of an overreaching financial plan and how it is seen as influencing the bottom line, but identifying a cost that should be passed to the client often presents difficulties. Advisers are sometimes reluctant to charge clients for the planning process.

Fee-based planning is being increasingly seen as essential in the industry. Sophisticated financial planning software can help to persuade advisers, who can have confidence in the plan. This should mean that a fee is seen as more justifiable as the planning process is adding value, improving the adviser-client relationship, and influencing ROI.

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