How does Tenet's tech strategy stack up?

Last year, Tenet signed a deal with Focus Solutions to create a new breed of technology solution for its members called Tenet Advantage.

The group has long recognised the value technology could bring to its business, both in how it interacts with its member firms and how the member firms interact with their clients.

RDR has reinforced this belief and re-focused Tenet on achieving some of the still untapped benefits of technology with the intention of obtaining this value.

“Advisory firms are having to change their propositions, moving their business to a fee-based world,” says Keith Richards, distribution and development director of Tenet. “It is our job to give them a technology platform to help them achieve this.”

When a platform is not a platform

The term ‘platform’ has caused some confusion in the market when used with Tenet Advantage and we should be clear that this is not a platform (wrap or supermarket) in the FSA definition.

Rather than being a custodial and administrative vehicle for many funds and products, it is more a system to hold information on these assets and to automate the advice process linked to them.

The system will link to true ’platforms’ to obtain electronic valuations and give a consolidated view of a client’s portfolio.

At the time of writing, Tenet Advantage will link with AEGON, Aviva and Legal & General, with links to Cofunds, Standard Life and Skandia in the pipeline. Other integrations to platforms and product providers will follow.

Such systems are often called a ‘wrap’ but this is illustrative of function rather than being an entirely accurate definition that would cover all, or most wrap platforms.

Modular solution

Richards is aware that as an IFA support group it is very difficult to mandate technology, so the solution has been designed in a modular fashion to enable IFAs to use the components they need and want and not be forced to use the whole solution.

“We are very aware that there is so much functionality in Tenet Advantage that initially components will be underutilised,” explains Richards.

“Some IFAs will use it very effectively just as a CRM system and others will base their entire service proposition around the financial planning processes that sit within the solution. However, when the technology is used, it provides a consistent framework across the adviser base and across all clients.”

Real benefits

Richards is clearly enthused about Tenet Advantage and has seen real benefits for the 20 IFA firms that have been trialling the software.

“There is one area of the system that helps advisers run ‘what if’ analysis on clients’ positions. It is great to see the motivation the tool is giving the advisers by helping them to communicate needs and wants effectively to clients. This technology is not just about process efficiency but sales effectiveness too – and that is of genuine benefit to the advisers.”

The system does help drive efficiencies though, and Richards is keen to point out that, by using the technology, cases can get pre-approval from compliance and this level of enhanced support from the network is a real differentiator.

Tenet Advantage has been sometime coming; we first wrote about the plans for it 18 months ago.

It is now being used by the initial group of member firms with other firms pressing Tenet to join the pilot group. The group is due to start full roll- out at the end of this year.