H&R Block Tests Moneystar-s Lifescript/cx

H&R Block is beta testing Moneystar-s Lifescript/cx software, which looks to facilitate the financial advisor/client relationship by migrating some account setup and management processes from the personal meeting or phone conversation onto the Web.

Some interactions between financial planners and their clients are well suited for the Web, according to John Thompson, director of practice management for H&R Block Financial Advisors. "Understanding clients' risk tolerance, understanding investment objectives, understanding their liquidity, their investment experiences and determining customers' objectives are things that we intend to be able to do with the online product," says Thompson. "We intend the online product to help facilitate that initial interaction through data acquisition."

But Thompson makes it quite clear that the goal of Lifescript/cx is not the disintermediation of client and advisor, rather the enhancement of that relationship through embracing the Web. Using the product, clients will be able to create and modify their investment objectives, obtain information about financial products and communicate orders to purchase stock. Whether or not clients will initially be able to trade directly over the system--which is one of H&R-s long-term goals--is still under consideration, according to Thompson.

H&R did not have a long vendor search for its client/advisor software needs. Its preexisting relationship with Moneystar (H&R advisors has been using Moneystar-s original Lifescript product for some time) made the choice fairly easy. "It seemed like a logical step to approach them and assess their ability to deliver this," says Thompson. He adds that H&R was looking for a system powerful enough to be used by a financial expert, yet simple enough for clients at various levels.

H&R will house software for the system both on its servers and on external servers maintained by Moneystar or a partner of Moneystar, with clients gaining access over public and private lines. Pricing is also something that has yet to be determined. Thompson says that a possible model could be free basic service, with more advanced tools available at a charge.

He adds that the new software should definitely be available to H&R Block Financial Advisors- clients by the first quarter of 2001.