Currence

Currence: Deep Dive Analysis for Institutional RIAs

Golden Door Asset has conducted an in-depth analysis of Currence, a wealthtech solution focusing on automated cash flow planning. Our assessment aims to provide RIAs managing significant AUM ($1B+) with a clear understanding of its potential value and limitations within their existing technology stack.

Strategic Positioning and Core Capabilities

Currence carves out a niche within the wealth management ecosystem by specializing in automated cash flow projections. Unlike comprehensive platforms like eMoney Advisor, which offer a broad suite of financial planning tools, Currence zeroes in on delivering dynamic financial forecasts. This specialization positions it as a potential force multiplier for RIAs seeking to deepen their client engagement through sophisticated scenario planning.

Core capabilities include:

• Automated Cash Flow Projections: This is the heart of Currence's value proposition. The degree of automation and the underlying algorithms' sophistication are crucial for accurate forecasting and minimizing manual adjustments by advisors. We need to determine how well this automation scales and handles complex financial situations.
• Scenario Planning and Analysis: This allows advisors to model different life events, market conditions, and investment strategies and their impact on a client's cash flow. The depth of the scenario analysis (number of variables, stress testing) will significantly influence its utility.
• Spending and Savings Optimization: Currence can analyze client spending patterns and identify areas for optimization to achieve their financial goals. The actionable insights generated will determine the real value for clients.
• Client Goal Tracking: Monitoring progress towards client goals is integral to any financial planning solution. Currence's ability to track progress against these goals in real-time, and proactively adjust the plan is crucial.
• Integration with Financial Data Sources: Aggregating data from various financial institutions is essential. The number and quality of supported integrations will significantly impact the usability and adoption of Currence within an RIA's ecosystem.

Institutional Application and Operating Leverage

The value proposition of Currence hinges on its ability to create operating leverage for RIAs. Its automated cash flow planning capabilities have the potential to free up advisor time, allowing them to focus on higher-value client interactions, such as relationship building and strategic advice.

Specifically, Currence can contribute to:

• Increased Advisor Efficiency: Automating tedious tasks like manual cash flow projections reduces administrative burden and frees up advisor time for revenue-generating activities.
• Enhanced Client Engagement: By providing dynamic and personalized financial forecasts, Currence can help advisors better engage clients and demonstrate the value of their services.
• Improved Client Outcomes: By optimizing spending and savings, and proactively managing cash flow, Currence can help clients achieve their financial goals more effectively.

The tool's utility depends on how effectively it translates complex data into easily digestible visualisations for both advisors and clients. The user interface and reporting capabilities need to be intuitive and professional.

Integration & Data Flow Analysis

Integration with existing systems is paramount for any new technology implementation. Currence must seamlessly integrate with an RIA's CRM (e.g., Salesforce, Redtail), portfolio management system (e.g., Tamarac, Orion), and financial planning software (e.g., eMoney Advisor, RightCapital) to avoid data silos and ensure a smooth workflow.

We highlight concerns about the available information regarding the integrations offered by Currence. A lack of robust API and data exchange capabilities with commonly used platforms will significantly limit its applicability for larger RIAs.

Data security is also a critical consideration. We need to evaluate Currence's data security protocols and compliance with industry regulations (e.g., GDPR, CCPA) to ensure the confidentiality and integrity of client data.

The lack of readily available pricing information is also a serious concern. It suggests a potential lack of transparency, and makes comparing it against competitors and building ROI models much more challenging.

The Verdict: Target Audience and Limitations

Currence appears best suited for:

• RIAs seeking a specialized tool for advanced cash flow planning: Firms that want to augment their existing financial planning software with deeper cash flow analysis capabilities.
• Firms focused on retirement income, tax, and estate planning: The targeted use cases suggest a strong focus in these specific areas.

However, Currence might not be a good fit for:

• RIAs seeking a comprehensive, all-in-one financial planning solution: Alternatives like eMoney Advisor and RightCapital offer a broader range of features.
• Firms with complex technology stacks requiring deep integrations: The lack of publicly available information about integration capabilities is a red flag. Without knowing what the API access looks like, and which integration partners they have in place, it is hard to justify adoption.
• Cost-conscious firms requiring transparent pricing: Lack of pricing information poses serious challenges in terms of budget allocation and ROI modeling.

Conclusion: Currence presents a targeted solution for automated cash flow planning. However, significant due diligence is needed to assess its integration capabilities, data security, and pricing before implementing it within a larger RIA operation. Until these elements are clarified, Golden Door Asset remains neutral on its overall value proposition.