New Covisum White Paper Suggests Technology in the Financial Services Industry Falls Short

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Today, Covisum announced the release of a white paper that suggests that advisors’ business models, and how technology companies serve them, will change dramatically in order to support a mass-customized financial planning process.

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Greater efficiencies of the mass-customization process make the service of highly-customized, quality advice more affordable to the mass-affluent, while still adding value for which the consumer is willing to pay.

Today, Covisum®, the developer of Social Security Timing®, Tax Clarity® and SmartRisk™ software solutions for financial advisors, announced the release of a white paper that suggests that advisors’ business models, and how technology companies serve them, will change dramatically in order to support a mass-customized financial planning process.

The paper titled,“The Tailored Fit: How Advisors Can Use Technology to Mass-Customize Financial Planning,” proposes that while open architecture has been the trend for the last decade, the future of the financial planning industry relies on full integration.

Today’s software options help advisors deliver individual elements of the financial plan, but the use of multiple tools inevitably creates inconsistency, or even conflicts, between the results. This leaves advisors to manually adjust to account for interactions between tools.

A growing financial practice cannot sustain customizing each aspect of a retirement strategy one component at a time. Tech tools of the future will vertically integrate multiple best-in-class calculation engines invisibly, so the user experience is specifically tailored for the end-client being served. Financial plans should be customized to fit each client’s unique situation. Financial tech companies must provide tools for mass-customization and position advisors to use their unique skills to tailor the plan to their mass-affluent clients.

“In the financial services world, the highest end of the market will always need fully custom financial planning work because there are enough unique circumstances to make the price point tenable and yet still valuable to the client,” said Covisum President Joe Elsasser, CFP. “For most people, however, there are a number of "normal situations” for which a calculation engine, capable of reconciling the differences between multiple individual decision-engines could do the work, if it existed. The financial planner could then implement any final tweaks that truly personalize the financial plan to the client’s situation.”

The paper, written by Elsasser, compares the upcoming shift in the financial services industry to the advances within the clothing industry. Technology mechanized multiple elements in the garment-making process and ultimately sped up production and distribution. However, a tailor is still necessary for a perfect fit.

“Like the tailor, there is no replacement for the special touch and expertise that the advisor can bring to the service,” said Elsasser, “But the greater efficiencies of the mass-customization process make the service of highly-customized, quality advice more affordable to the mass-affluent, while still adding value for which the consumer is willing to pay.”

The white paper is now available for download.

ABOUT COVISUM

Covisum provides financial advisors with software, training and support to deliver retirement income plans that improve the lives of clients by facilitating better decisions. As the name represents — “co” means joint or shared, and “visum” means vision — Covisum helps advisors and their clients create a shared vision of the future. For more information, visit http://www.covisum.com.

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Lauren Laferla
@covisum
since: 11/2016
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