http://www.infosys.com/finacle A financial planning system should have the capability to allow capture of financial and non financial data of the customer, administer risk profiling, capture and plan for different goals and enable portfolio management of the client. http://www.infosys.com/finacle

1. Financial Planning Services
Universal Banking Solution System Integration Consulting Business Process Outsourcing

2. Traditionally, banks were defined as financial in moving from transaction-based banking
institutions for safe custody, loan, exchange or model to a combination of transaction &
issue of money for the extension of credit and relationship based fee model. A strong advisory
for facilitating transmission of funds. While relationship with the clients also increases the
these remain as the core services offered, a host transaction fee earned from each customer on
of additional services have come under the ambit account of increased business through the bank.
of revenue generating avenues for banks.
Key Trends in Financial Planning
Under the wealth management space, banks
extended their business by offering bank-owned Alternate Channels
and third party products to their clients. The
demand for advisory services has also risen A financial planning system should have the
in recent times post the global financial crisis capability to allow capture of financial and non
as customers seek investment guidance in financial data of the customer, administer risk
difficult times. Today, financial planning services profiling, capture and plan for different goals
are offered by most banks in the wealth and enable portfolio management of the client.
management domain. This extension of banking Financial planning process is a consultative
services makes logical sense since banks aim process between a certified financial planning
at providing holistic solutions to all financial advisor and the client. Once the financial plan
needs of their customers. is drawn out and decided between the parties,
it is tracked by the advisor for any deviations.
How Offering Financial Planning Services is While face to face meetings might be required
Beneficial to Banks from time to time, the banks are encouraging
customers to use non-branch channels to meet
Stronger Client-Advisor Relationship their banking and wealth management needs.
A strong financial planning platform enables Online Financial Advisory Services
the bank in building stronger relationships with
their client. Financial planning involves a deep Consumers value online banking features that
understanding of the clients’ asset, liabilities, address their communication needs and offer
incomes, expenses, risk profile and goals. A personalized experiences. Providing online
strong client-bank relationship ensures loyalty, access to clients to their financial planning
as the customer is less likely to switch banks account is an important requirement of a
and start the financial planning relationship afresh. financial planning system. This enables the
client to track their investment and financial
Customized Services to the Clients goals independently. This can be extended to
providing an advisor interface to the clients.
Banks sit on a wealth of customer data which The client interaction with the advisor can be
can be mined to determine what products can provided through audio/video support. Access
be offered to clients. A sound understanding of to research reports, videos of financial expert
the customers’ financials enables the bank to seminars/talks can also be provided to the clients
customize their offering. In-depth knowledge of through their online financial planning account.
each client’s needs and aspirations facilitates
effective customer segmentation resulting in Online service channels aim at bringing the
targeted and structured client communication. branch experience to online banking. Banks can
Banks can hence realize greater revenue maximize their revenue earning potential by
through targeted campaigns based on the tapping into mass affluent client base. While
customer requirements. High Net Worth and Ultra High Net Worth
Individuals require highly customized solutions
Increase in Revenue Share per Client and personalized financial advice, the financial
planning needs of the mass affluent customer can
Banks earn revenues from transaction fee as be effectively met through online financial
well as advisory fee. Banks have made an effort advisory services offered by banks.
Financial Planning Services

3. Mobile Financial Planning Applications for Clients invest, save, and borrow money.' Belsky and
Gilovich (1999)
There has been a strong growth in the use of
mobile applications by smart phone users Behavioral finance is gaining significant
across the globe. However, introduction of importance with bankers and wealth managers.
mobile applications in the financial planning Advisors can use aspects of this new and
and wealth management space has been evolving discipline to gain a deeper understanding
slow owing to various reasons. Ensuring of the client before offering investment advice.
adequate level of security is one of the key Understanding the financial goals of clients is
challenges for firms while introducing mobile a key element in creation of the financial plan.
apps for clients. Financial planning and wealth It is essential for the advisor to understand
management firms are however realizing the the emotions behind the goals to effectively
potential of apps in engaging clients and offer investment advice. Applying principals of
offering a more meaningful experience. Clients behavioral finance to financial planning can help
are also demanding new communication create strong and healthy advisory relationships
channels, more information and ready access to with clients.
their accounts. Mobile apps in the financial
planning domain would enable clients to track Banks offering advisory services as part of their
their portfolios, goals, provide access to research wealth management division can create long
reports, market news etc. lasting relations with clients leading to increased
revenue realization per customer. Banks need
Mobile Financial Planning Applications for Advisors to adopt new technology in this domain in order
to offer financial planning solutions which are
Access to business applications through relevant to their clients. The need of the hour is
their mobile devices is a new trend gaining to equip the financial advisors with the tools,
significance in todays’ technology driven world. applications and knowledge which would
Mobile financial planning apps enable the enable them to service their clients effectively.
advisor to access the same functionality on the Enabling clients to communicate and interact
go which can be accessed while in office. with the advisors using new and alternate
This could include access to client accounts, channels would also strengthen their financial
interacting with clients etc. planning offering.
Behavioral Finance
Author
Behavioral economics combines the twin Priyanka Diwan
disciplines of psychology and economics to Consultant – Finacle
explain why and how people make seemingly Infosys Limited
irrational or illogical decisions when they spend,
Financial Planning Services