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Financial Planning Technology

Financial Planning Technology

February 02, 2024

Without technology, it is difficult to recall when financial planning and portfolio management were practiced. To create suitable investment and retirement plans for clients, independent advisers, registered representatives, and accountants have grown to rely on sophisticated financial software.

The top five financial planning software options utilized by financial advisors will be discussed in this article. According to market share, the top five financial planning software solutions licensed financial advisors utilize are MoneyGuidePro, eMoney Pro, RightCapital, Orion Financial Planning, and eMoney Plus.

RightCapital

RightCapital ended 2021 in the third position with 9.71% of the market. It is a very young piece of technology, especially when compared to other market leaders. It was founded in 2015. When it comes to newer, smaller advisors, RightCapital competes quite well with the market leaders,

RightCapital was developed to be in the center ground between restricted and comprehensive planning tools, and it typically appeals to young clients who need assistance with budgeting. It offers a number of partner integrations with analytics software tools, custodian and/or clearing organizations, performance reporting systems, and CRM programs. Additionally, RightCapital highlights various distinctive elements of their offering, such as:

  • RightPay: an integrated and fully functional client billing system.
  • RightIntel: an integrated business intelligence tool.
  • Snapshot: clients' own, customized strategy summaries.

Financial Planning by Orion

Orion Financial Planning is ranked fourth for 2021 with 6.3% of the market. With over 10% of the market share in 2021, Orion Financial stands out as a top choice for businesses with assets under management of between $4 million and $5 million.

After acquiring Advizr in 2019 and rebranding it as Orion Financial Planning, Orion Advisor solutions has grown tremendously over the years. Orion has increased its assets under management by 50% after the purchase. During 2020 and 2021, the market share of Orion Financial Planning more than doubled.

Tax administration, financial reporting, client billing software, security trading, company analytics, and financial planning are just a few of the technological services offered by Orion Advisor.

MoneyGuidePro

MoneyGuidePro is the most widely used financial advisor software package in terms of market share with 36.82% of the industry in 2021. MoneyGuidePro, which debuted in 2020, is regarded as one of the most comprehensive tools.

MoneyGuidePro's attractive, user-friendly interface is partly responsible for its success. The primary page includes a "Play Zone" where users can enter various parameters and see potential results to fully engage the user. The adviser maintains complete control over the program, including what portions of its clients, are permitted to view.

The MoneyGuide suite of products, which is owned by Envestnet, is divided into three levels:

  • MoneyGuideElite: provides a high degree of services, such as annuity strategy modeling, tax planning quantification, and dynamic income modeling.
  • MoneyGuidePro: delivers more advanced options, such as custom report templates, tools for risk management, and estate planning.
  • MoneyGuideOne: provides financial planning guidance for advisers just starting out in the software industry.

eMoneyPro

eMoney has a comprehensive program and is well-known for its in-depth cash flow analysis tool. eMoney Pro's market share increased from 18.7% in 2020 to 29.7% in 2021.

A feature of eMoney that helps advisers keep on top of important customer and market circumstances is its financial feed, which offers real-time data, notifications, and news. Another significant component is the eMoney client portal (emX), which enables users to access a printout of their accounts at any moment.

Regarding customer satisfaction, eMoney is the distinction of being the highest rated financial software product. To assist financial advisors at various service levels, the eMoney product line also offers a variety of independent solutions and APIs.

eMoneyPlus

With 6.1% of the market, another eMoney product, eMoney Plus, ranks fifth in 2021. The application is a step down from eMoney Pro, concentrating on fundamental planning with a more condensed set of options instead of eMoney Pro's more complex planning features.

The eMoney Solutions

eMoney Plus

  • Product Description: Build stronger planning-led connections and deliver more plans to more clients by leveraging intuitive, optimized goals-based solutions.
  • Access to the eMoney platform on a basic level, initial planning, and advanced analytics applications are examples of solutions.

eMoney Pro

  • Production Description: Leverage advanced strategies to provide the most extensive cash-flow-based options to meet clients' most complicated planning needs.
  • Access to sophisticated platforms, advanced planning, and advanced analytics are some solutions.

The majority of eMoney Plus’s success comes from advisors who are dual registered. eMoney Plus has a 7.5% market share for these customers (behind only MoneyGuidePro and eMoney Pro)

What Software Is the Best for Financial Planning?

Each financial advisor will function best using software that complements the requirements of their clients. Some advisors are better off using more straightforward, affordable options that make it easier to explain client portfolios. Others need stronger managerial tools or heavier analytical capabilities. In

either circumstance, a financial advisor should consider their client's demands and determine whether the degree of a financial planning software application is appropriate for those needs.

Final Thoughts

Financial planning software is best suited for your clients, whether you're a small firm just getting started or a larger firm wishing to upgrade to a complex, highly capable analytic solution. To better manage your client's assets, think about what you need to do to best meet their investing needs, then investigate a solution perhaps one of the more well-liked ones on this list.

 CRN202702-5861707