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According to The Kitces Research on Independent Adviser Tech, in 2021, 83% of financial advisors used some type of financial planning software.[1]If this fintech has not found its way into your heart, now may be the time to consider it.

The term fintech can encompass any technology that is used in the financial industry. This term can refer to the technology used by private investors and clients as well as industry professionals and financial advisors. Understanding the basics of fintech for financial advisors could be what sets your practice apart and brings you to where future clients are.

No matter how experienced and skilled you may be in financial advising, you may find yourself falling behind in the ever-changing world of financial technology. That is why I have decided to create this series; to help financial advisors learn of the latest fintech and maybe fall head over heels for them.

Today’s fintech is Financial Planning Software. This article will detail what it is, some features you can look for, and considerations to make when deciding on a financial planning software.

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What is a Financial Planning Software?

Financial Planning Software is probably a name you’ve heard and perhaps a fintech you have some history with. It is essential to take a fresh look at things or maybe look for the first time. A financial planning software can have a lot of different functions and features.

Simply put, a financial planning software helps financial advisors manage money for their clients by utilizing calculations and projections across accounts[2]. The software can provide features such as investment tracking, spending analysis, risk management and more. As a financial advisor, a financial planning software could be the partner you’ve been looking for.

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What are some features of a Financial Planning Software?

A financial planning software has the potential to have many different features which add to its charm. Depending on the specific software you select, there are a myriad of functions it can provide you with.  Some of these features include: (Call 858.964.0500 to see how the Dunham Portal offers feature such as these!)

1.Integrations: Financial Planning Software will often have integrations with other software in your tech stack, like your CRM (Read more about CRMs in this Falling for Fintech Article). This can be a significant advantage as it pertains to clear client communication and the avoidance of information loss amongst several software.[3]

2. Performance Reporting Solutions: As much as everyone likes to code a spreadsheet by hand, pivot tables included, sometimes it’s easier to let a software do the work for you. A financial planning software may have a performance reporting solution that makes it easy to visualize and track your performance[4].

3. Projections: A financial calculator can only get you so far. Sometimes your business will require you to run complex and sophisticated projections. A much easier way to accomplish this task would be to have a financial planning software that can run such projections.

4. Security: In the world of financial advising, it is important that you keep your eyes on cyber security. Many financial planning software offer robust security systems.

5. Statement Generation: Another attractive feature to look for in a Financial Planning Software is the function of statement generation. Certain financial planning software will have the ability to auto-generate statements, saving you a great deal of time.

Make sure to always check with your compliance department before selecting a financial planning software, because they will understand the regulatory requirements and your firm’s compliance requirements.

A financial planning software, like many of the software I have talked about in this series, include many different amongst the different kinds.

financial Planning software girl with ipad

How to find the Financial Planning Software for me?

With so many fish in the financial planning software sea, it can be hard to find the one. When making this important decision, here are some considerations you may make:

1. What do you clients need? When it comes to any fintech you decide to use at your firm, it is essential to remember who your end client is. The financial planning software you choose may have all the bells and whistles you’ve ever wanted, but if it doesn’t have the kind of features and outputs your clients are looking for, it won’t be of much value to your firm.

Think about how your clients want to view their data and the type of user experience they are looking for if you plan to have a client facing portion of your financial planning software.[5]

2. Will the financial planning software play nice with your other fintech? Integrations amongst your fintech is essential to a productive and smoothly run firm. Fintech fails to provide value when you have several that cannot work as a unit. Be aware of what specific fintech you already have and how different potential financial planning software can integrate with them.

3. Is your client looking for a goal or cashflow based software? A goal based financial planning software will establish clear events or goals that guide your client down a strategic financial plan.

In contrast, a cashflow based financial planning software will attempt to determine your clients future cash flow plans by using their current financial situation. Depending on the type of planning you are using with your clients, this is an important consideration to make.[6]

financial planning software girl with calc

4. How does your compliance department feel? Your compliance department should be an integral part of considering a financial planning software. They can tell you which software meets regulatory requirements and your firm’s guidelines.

5. What is your level of digital proficiency? A new fintech can come with a steep learning curve. When choosing a financial planning software, it will benefit you to take a careful inventory of your and your firms’ digital literacy. A fintech may be an attractive addition to your firm, but it will lack value if you don’t understand how to use it.

In today’s article we have talked about the various attractive features of a financial planning software and the considerations you should make before deciding on one. With over 80% of financial advisors using this fintech, it may be time for you to join them as well. The fintech for you is out there, don’t forget to take your time in choosing it.

Is there a fintech for financial advisors that have caught your eye recently? Submit your topic ideas and you may see them in installments in the weeks following.


This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax, or investment advice or an investment recommendation, or as a substitute for legal counsel. Any investment products or services named herein are for illustrative purposes only and should not be considered an offer to buy or sell, or an investment recommendation for, any specific security, strategy, or investment product or service. Always consult a qualified professional or your own independent financial professional for personalized advice or investment recommendations tailored to your specific goals, individual situation, and risk tolerance.

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