How to build custom financial planning software for your business?

What is financial planning software?

As the name suggests, it directs to software that helps enhance the planning of finances by connecting the financial data of the person or the organization that can be retrieved to accomplish the preferred analytical outcome. The information provided in the software can be from different origins such as financial transactions, bank records, investment tracking, portfolio management, and many other references.

With the surge in the HNI clientele base, the financial planning association felt the requirement for software that could follow and handle the income of the customers. The customers, too, seek keys to keep track of their investments and value at their fingertips in the state of mobile applications.

To flourish, it has now become compulsory for companies to have reliable financial planning software that can effectively handle their ERP, delivering effective client service. Besides this, handling the metadata is also helped with robust financial planning software.

Must-have characteristics of a financial planning software

Financial planning consultant companies strive to offer value-based benefits to customers by delivering transparent research and updates on their financial planning processes. To keep up with the growing expectations of the customer and market, having strong financial planning software is a must. The most essential elements that the progressive financial planning software must have are:

Link to investment performance data

Successful financial planning is instantly connected to the implementation of the investment market. A reasonable financial planning software must have a component that can join customers’ investments with market performance. Getting transparency on the development trajectory of the investment with the wider market interpretation will provide a true view of how to reach the final investment plans.

Efficient workflows

A financial planning company’s position is not only to deliver asset answers for customers or to handle their portfolios but also to handle their day-to-day processes smoothly. By simplifying internal processes, financial planning businesses can provide better services to their customers. Thus, it is a must that financial planning software provides you with instinctive and easy-to-use knowledge. The ease of gathering data, making suggestions, managing a broad range of portfolios, and more should be seamlessly integrated.

Customizable experience

Customization is the latest standard in the software industry. Offering customizable information, AI-based automated suggestions, and more are the basic anticipation of financial planning software. The purpose of good financial planning software can be derived from the power of the software to create custom reports showing the individual financial journey of every customer.

How to develop financial planning software for your company?

For advisors, financial planning advisory companies, or personal financial management, the concept and necessities of the software planning software might change. Having said that, a comprehensive software package will present a collection of algorithms to assist and cater to other customers by offering custom solutions to arrange their investments.

Of course, the development strategy contains conceptualization, designing, development, and deployment of the software. However, while making financial software, the parameters had completed all the contrast and help the software distinguish itself from its rivals.

Select the software type – Goal based vs. cash flow based

Every customer is diverse and their requirements, too, are different. Based on the clientele type, the first stage is to determine the software type based on the advice your business offers to the customers. It can be categorized into goal-based and cash-flow based.

The goal-based financial planning software projects the objective based on the investment being done. One can assess the amount of investment needed to achieve a necessary purpose. This might not think the overall profits to gauge the investment needed. On the other hand, the cash-flow-based planning software catches every earned penny and advises on the investment predicting the probable objectives.

Delivery module – Interactive tools vs. printed reports

With digitization, we are fast progressing towards paperless environments. The software must have an interactive and intuitive element that can instantly project the results on the customer’s devices, like smartphones and tablets. The software should allow collaboration by showing presumptive shifts and projected outcomes at the fingertips.

Customer-centric enhancements

Understanding and catering to different customers and discovering new ones is the basic element needed in any financial planning software. The software must allow the advisor to cater to customers of all cadre – HNI or newbies. The software must have the ability to customize the acquisition solution provided by the advisory companies with the customer’s anticipations and experience.

Ease of input

The expectations from financial planning software are that inputting some essential numbers like incomes, savings, and other investments should deliver a sensible and realistic output in times of the investment. To ensure the same, the design approach should be carefully laid out for the fluidity of the functioning. The plan must have modular financial planning tools also, such as different insurances, stock opportunities, tax planning, and more.

Rational platforms and plugins

Believing that all the users will not be equally tech-savvy, delivering a part of combining personal financial planning solutions will be needed. The software should be responsive on all gadgets, from desktops to mobile devices and more.

Select the tech stack

Technology plays an important role in creating robust software. The basic tech stack needed to make the financial planning software is:

Backend – Python, C#, C++, Ruby

Frontend – HTML, JavaScript, CSS, TypeScript

Database – SQL, NoSQL

Include the security components

For different good reasons, financial planning software is leveraging cloud-based technology. As the data gathered and processed is enormous and from different sources, keeping the security parameters strong is crucial. The development strategy should be carried out keeping the same in mind from beginning to finish.