November 27, 2013
A new software partnership which aims to help advisers position themselves as ‘financial coaches’ has been announced by Midwinter.
Having recently launched its new AdviceOS financial planning software, Midwinter Financial Services has now joined with accounting software provider Xero to deliver an additional cloud-based reporting solution for advisers and their clients.
Midwinter’s AdviceOS has been integrated with Xero’s Cashbook, which enables advisers to oversee their clients’ cashflow anywhere, any time. Cashbook links directly to the client’s bank accounts, and allocates transactions to a list of categories, enabling the client and adviser to see exactly how and where money is being spent.
Julian Plummer, Managing Director at Midwinter, said the ability to track a client’s spending habits gives advisers the opportunity to enhance the quality of their advice.
“What attracted us to Xero’s Cashbook is that it gives advisers a true indication of a client’s cash flow by aggregating client transactions from linked bank accounts.
“It gives the adviser an integrated and tangible budgeting tool which they can leverage to become more involved in the advice relationship. Ultimately it’s about helping the adviser become a ‘financial coach’. They can identify opportunities to reign in over-spending, or invest surplus money more effectively.”
He said the solution also had practical applications for risk advisers:
“The Cashbook tool can help advisers to determine the most appropriate level of cover for their clients, because the calculation is based on detailed income and expenditure information. At review time, the adviser can track whether the level of cover remains appropriate, based on the client’s annual cashflow.”
Mr Plummer said the partnership was a natural fit, because Midwinter and Xero both utilise cloud technology, meaning advisers and clients can access the same, real-time data from a variety of devices.
Xero Managing Director, Chris Ridd, said the software firm was excited to be entering the financial advice channel. “This gives us the opportunity to introduce and expand Xero Cashbook alongside a leading financial services organisation, and one that aligns to our pure cloud model. Cashbook is a powerful tool that lets professional advisors amplify their advice,” Mr Ridd said.
The integration between the two programs will be fully-functional in January 2014. Midwinter will showcase the new technology at a series of roadshow events in February next year.