MoneyRebel has successfully passed its first milestone and is now fully engaged in attaining the second — the financial advisory platform, MR Advisor.
“We are building a comprehensive financial advisory platform, which will bring the entire process together under one roof. Functionalities, from client onboarding to portfolio creation, rebalancing, monitoring and reporting will all be available to financial advisors on our MR Advisor platform. For each functionality, we will offer advisors the possibility of using our in-house developed default options, or they can use their own parameters and values to adjust to their existing processes,” states Gregor Pipan, MoneyRebel project manager, responsible for the specification of MR Advisory tools.
So, let’s walk through the upcoming advisory tools, which will be available in Milestone 2.
As every financial advisor knows, the first meeting with a client is the most important step in establishing a long-lasting relationship. Sharing one’s financial needs, personal finances, and entire life’s situation is an act demonstrating the deepest level of trust a client can have with their financial advisor. Therefore, it is of the utmost importance that a financial advisor correctly manages clients’ initial expectations and educates them in the proper manner with regard to the risks that may arise down the road in fulfilling their financial goals.
“We are developing a questionnaire functionality (MIFID II compliant), which will allow financial advisors to determine the risk tolerance profile of a client, their risk capacity for each investment goal and recognize gaps in their understanding of risks. Financial advisors will have the option of building their own questionnaires on the platform and using their own client answer valuation system,” announced Gregor Pipan.
Financial advisors will choose a risk profile for their client, based on their completed questionnaires, and allocate portfolios they consider appropriate, or they can use the allocated defaults. Asset allocation functionality will empower advisors to demonstrate to their clients how the relationship between expected return and risk affects the likelihood of reaching their investment goals. It will show the path towards the date of withdrawal and issue a warning when things get off track. It will also calculate and suggest ways on how to get back on track to meet one’s investment goal.
Advisors will be able to use both standardized model portfolios and customized individual portfolios. They will have the freedom to set up their own asset allocations. “The functionality will include alarms for rebalancing, staying on track, and individual security movements. Advisors will see the tax effect of rebalancing or reallocating. Faced with a trade-off between the allocation and tax efficiency, advisors will thus be able to make well-informed decisions,” added Pipan.
We will include a special pension calculator, which will estimate the pension gap for an advisor’s client. Using the savings calculator integrated into the asset allocation functionality, the advisor will suggest the best way to fill the gap. “Additionally, advisors will have at their disposal a mortgage calculator to calculate and show their clients the liquidity restraints that monthly instalments pose on their families’ budgets.”
Planning Templates & Yearly Report
We will provide advisors with standardized planning templates, which will facilitate their processes and save their time. The Yearly Report functionality will enable advisors to generate reports automatically, showing their clients the added value gained from their advice.
Not only will advisors see the tax effect of desired transactions, but they will also be given the possibility of tax-loss harvesting. This functionality will substantially reduce the time necessary and free advisors’ resources for what really matters — establishing and managing their relations with clients.
“Creating an international community of financial advisors brings many opportunities for the end client, too. Financial advisors’ clients will be able to review their services. We have developed a complex algorithm to rank advisors that are hosted on our platform. Thus, advisors will be able to promote their business to new, otherwise unreachable clients,” announced Gregor Pipan.