Despite the relatively low usage almost three-quarters of advisers say cashflow modelling tools are important to help clients meet long-term goals.
Two out of three advisers say using cashflow modelling during the pandemic has helped reduce client concerns about the future.
The survey by fintech Intelliflo, in conjunction with cashflow tool provider i4C, found that over two thirds (64%) of advisers and Paraplanners were using cashflow tools to help clients through significant changes to their lifetime plan as a result of the pandemic.
The poll revealed that cashflow modelling was the most popular tool for helping clients meet their long-term goals with 70% of advisers and Paraplanners in agreement.
Almost nine in 10 (88%) respondents agreed that cashflow modelling helped to demonstrate the value of advice to clients and that clients felt “more engaged” in the Financial Planning process as a result of using cashflow modelling.
Features such as ease of use, graphs and reports and tax calculation were seen as the main benefits of cashflow modelling tools, the survey found.
Almost all advisers taking part in the survey (92%) agreed that cashflow modelling helped clients to understand the effects of significant market movements on their future plans.
Overall the survey found that only a third of advisers (34%) offered cashflow modelling to all clients and 8% do not offer it at all.
A quarter of advisers (25%) cited lack of time as the main barrier to using cashflow modelling more widely.
A third (34%) of advisers and Paraplanners use cashflow planning less than once a year and less than half are using it at significant milestones such as retirement (39%), when a client’s lifestyle changes (36%), or when clients receive a lump sum (24%). Almost a quarter (23%) of advisers are not using their cashflow tools live with clients.
Nick Eatock, CEO of Intelliflo, said: “These findings tell us that advisers appreciate the value of cashflow modelling in demonstrating the value of advice and helping their clients plan for the future, but are yet to realise its full potential. Cashflow modelling is a great example of the powerful combination of people and technology in delivering advice.”
• Intelliflo and i4C surveyed 328 adviser firm employees in October and November.