Make the virtual office work for you

Ann Dempster, managing director of Plum Software, says to succeed IFAs must keep up to speed with modern technology...

Not too long ago, if you needed a new piece of software, you also had to invest in hardware on which to run the new software. That all changed with the arrival of software as a service (SAAS). This allows advisers to access exactly the same software that much larger companies use, without the need for lots of capital expenditure on IT. Instead, you simply use the software whenever you need it, wherever you need it, via a web connection.

Software as a service

There are significant advantages in using your software over the internet. For a start, you do not need to worry about the security risks involved when carrying your clients' details around on PCs and laptops. Backups are done automatically for you, and you have instant access to your client details from the paperless office from any location in the world. All of your scanned documents, emails and even voice recordings are easily accessible, so you really can run a 'virtual office' anywhere.

The virtual office has other benefits too. What if one of the best people in your team wants to work from home for a legitimate reason for a few weeks (Perhaps they have their kids at home during the summer)?

Well, you can easily set up flexible working, or business partnerships with people in different locations, because all they need is internet access. They do not need to be actually sitting next to you in your offices. Also, there are the security implications: if your records are computerised, it's much safer than storing everything on paper, although you still need to make sure you're saving backed-up copies of everything.

Data storage

So, are there any drawbacks to using SAAS? Well, you still need to have a good grasp of what's happening in your business. Where is your data stored? Is it being hosted overseas? Can you get access to it when you need it? Do not forget: it is still your client data and you are responsible for it.

One thing that lots of advisers do not think about is whether their data is now part of one big database that might be vulnerable to cyber-attacks. If this is the case, and there is a problem with any part of the data - not just yours - then all the data is affected and needs to be restored and patched. Indeed, a large database is much more likely to have problems that can affect all users, so it's usually better to have your own database, over which you have complete control.

ASP the question

When it comes to data, size matters. Put simply, the more you store electronically, the more you pay to do so. So, what is the best solution? Well, using an Application Service Provider (ASP) you have your own individual database. You are in control of your data, and it is much less vulnerable to any cyber-attacks. But it is still vital that you have regular backups of your data in your hands. The data belongs to you, not the provider of your hosted solution. Do not forget that!

Using an ASP should be pretty simple. Usually, the software they offer is based on Microsoft tools, so you can have all the benefits of Word, Excel, Outlook and all of the other programmes you already know how to use.

The speed of the software is with the ASP, not the speed of the internet, so you do not even need broadband. You can use any internet access point you like to use the software. However, you will need the fast access offered by broadband if you are printing or copying information to or from the software.

But the real benefit of using an ASP is that the software is available either on your own hardware or through the internet so you have the option at any time to switch to using your own hardware. So, if your internet connection goes down for a period, you are still able to keep working. There should also be less restriction on the size of your database, so storing documents in order that you can access your client files from any location is feasible.

Furthermore, an ASP uses lots and lots of servers, so it is easy for them to move your data around if there are any technical problems. If they use several Internet Service Providers (ISPs), your ASP can easily switch you between internet providers if one particular internet provider has a reduced service for any reason.

To remain competitive, the financial advice industry needs to keep pace with modern technology. In sectors such as banking or medical records management, there are very strong data isolation requirements. Companies in these sectors would not even consider an application that did not supply each tenant with its own individual database. I would suggest that this should also apply in the financial services industry, so that we can ensure that we are keeping up with best practice.