CFS has developed the Edge but in no rush to migrate FirstWrap

It will be at least a year before Colonial First State (CFS) looks to migrate clients from its existing FirstWrap platform to its new CFS Edge platform.

CFS chief distribution officer, Bryce Quick told Financial Newswire that the company would not be looking to undertake any migration for at least 12 months and that, ultimately, it would not be something that would be rushed.

As well, he noted that when it occurred the migration would not be of the scale undertaken by BT with respect to moving BT Wrap onto the BT Panorama platform.

Quirk said that, in any case, CFS had previously undertaken multiple smaller migrations and would draw from that experience when the time came.

The new CFS Edge platform was showcased to industry participants and stakeholders in Sydney on Tuesday night after having been already nine months in the build and development stage.

Quirk said that it would be tested rigorously over the Christmas/New Year period before being readied for launch during the first quarter of 2023.

The platform has been developed with reference to the needs of advisers and their support staff, with CFS having consulted with and drawn on feedback from 12 advice practices in different locations and with different client demographics.

Reflecting the CFS approach of using multiple applications providers around a core provided by FNZ, CFS has pointed to Iress, Adviser Logic and MyProsperity as being participants.

Quirk said the approach had effectively shortened the time taken to bring Edge to market.

Iress announced yesterday the creation of a ‘Connectivity Network’ that intends to directly connect platforms and insurance providers with advice software providers such as Xplan.

It said CFS and MetLife Autralia had signed Memorandums of Understanding in which they had agreed to collaborate on the design and creation of the Connectivity Network.

Iress said that core to the Connectivity Network was the delivery of a new cloud-based infrastructure capability known as Xplan Affinity designed to enable platform and insurance providers to integrate directly with Xplan, facilitating straight-through processing of client onboarding, trading, insurance applications, advice execution, and client maintenance, as well as reporting by financial advisers, licensees, and their support teams.

Iress’ Commercial Director – Investment Infrastructure, Geoff Rogers, said: “I’ve spent much of my career finding ways to make advice more affordable and accessible for all Australians. At the same time, I’ve seen the challenges many in the industry have faced in running efficient and profitable advice businesses. This is why I’m delighted to announce the creation of the Connectivity Network and to have the support of CFS and MetLife Australia.

“Research shows the cost of providing advice is increasing, averaging $3,280 in 2022 (up from $2,500 in 2017), which effectively shuts out around 40% of everyday adult Australians. For those consumers that do get advice, the experience is often time-consuming, taking months from the first meeting with the adviser to when the advice is actually implemented.

“As Xplan Affinity comes online, manual elements of the advice process will be digitised. Details collected through the client onboarding process can be automatically populated into platform application forms, removing the need for onerous and error-prone manual processes. Similarly, advisers will be able to provide trade instructions to platforms via Xplan, removing the need to leave that environment to implement the advice. The efficiencies gained from this can then be reinvested by advisers into client growth and help them to reach more Australians with quality and affordable financial advice.”

Quirk, said: “CFS is currently undertaking a significant transformation journey focused on leveraging technology to uplift our products and services to advisers. By partnering with industry leaders like Iress to explore new technology solutions, we’ll ensure that CFS is at the cutting edge of advice technology.

“We understand the value of making quality advice affordable, we believe we can help achieve this by providing advisers with the flexibility to work how they want, when they want. We’re excited to be part of the development of this new Connectivity Network and exploring the opportunities it can offer.”