Australian financial planning software Lumiant makes US debut

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Lumiant, an Australian company founded in 2020 that develops financial planning software, made its official US debut on Tuesday. More than 150 advisers from more than 4,000 households are already using the software in Australia and the company hopes it will be as successful in the United States.

It would have launched in the US earlier but the Australian border was closed until April to mitigate the spread of Covid-19. Lumiant co-founder Santiago Burridge said Intel RIA he was on the second plane from Australia after travel restrictions changed.

The market for financial planning software – a necessary tool for professional wealth managers – is growing but still dominated by a few developers. The most popular software, eMoney and MoneyGuidePro, have 33% and 30.3% respectively. RightCapital, which is growing in popularity, holds 19.7% of the market. The rest is shared by more than half a dozen other developers.

Burridge says these developers aren’t competitors – Lumiant was designed to augment the planning process, so there’s plenty of opportunity in the US Unlike other financial planning tools that only track a few goals, Like a nest egg for retirement, Lumiant tracks 15 goals and each member of a household can log in and see the status of each goal at any time, he said.

“We ask about the things that really interest them,” and those things aren’t explicitly financial goals, Burridge said.

The primary goal of investors on the Lumiant platform, across all demographics, is to support and protect the people they love. For retirees using the platform, the second most important thing (after family support and protection) is to be more active and healthier.

Understanding and tracking non-financial goals using Lumiant helps advisors give better advice to clients, Burridge said.

Only investors with an advisor can use Lumiant’s platform, which has two membership levels and is paid for by the wealth manager. A $3,000 annual subscription includes tools that track a household’s goals, well-being (eight factors including physical, emotional, spiritual, environmental, and financial), tasks, and investment preferences. Advisors can summarize a client meeting in a concise “book of life” within minutes. Advisors get 80 client connections with each membership. Wealth management companies can get more client connections for $10 per household or buy bundles. Fifty additional connections cost $375. The more connections an advisor buys, the more discounts they get. Five hundred connections cost $750.

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A $6,000 premium subscription unlocks a tool that analyzes multiple goals and shows the likelihood of a client meeting their financial goals. It also allows clients to upload and store digital documents and includes a governance tool that shows clients how their family’s asset and inheritance structures are set up.

One of Lumiant’s goals is to ensure that the non-financial spouse, which the startup defines as the spouse typically focused more on life outcomes than financial outcomes, is part of the financial planning process and has map access. Most advisors and financial planning software don’t engage spouses adequately, or at all, Burridge said. As a result, 50% of an adviser’s clients could be ignored, he added.

Luminant creates accounts for each spouse and leverages the accounts to encourage certain behaviors. It tracks how often users log in and the non-financial spouse – designated by their advisor – must take action on the platform before their partner can. “Everything in the system is set up so the non-financial spouse always comes first,” Burridge said.

According to Burridge, only 5% of clients regularly use financial planning platforms. This increases to 33% when using Lumiant, he said.

Lumiant doesn’t integrate with any other software, but the company is talking with Envestnet about integrating with MoneyGuidePro, Burridge said. Currently, advisors must manually update balances and enter customer information into Lumiant. But that effort might be worth the investment.

In February, Lumiant surveyed advisers using its software and found that they had received five additional referrals in the previous year and could charge an additional US$1,300 per household for their advice. Wealth managers surveyed also said their client retention and compliance had improved, and that the automated features of Lumiant’s platform had saved them at least two hours per client over the year. previous, according to Burridge.

Holly Deaton (@HollyLDeaton) is a writer at RIA Intel and based in New York.

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