MoneyStar Communications has created new modeling software that can work with its on-line financial network.
The software, LifeScript, lets investment product brokers make graphical presentations to potential customers. The on-line service, MoneyStar Financial Network, gives brokers Internet access to information about a variety of investment products and securities markets.
MoneyStar, based in Austin, Tex., has sold 1,800 copies of LifeScript and aims to quintuple that this year. The software costs $475 per copy per year, including access to the MoneyStar network.
The company said every dollar spent on the software will generate $10 in added revenue.
LifeScript lets brokers chart the financial requirements of events such as a child starting college, the purchase of a home, or retirement.
The Internet-based MoneyStar Financial Network acts as a clearing house for financial services information.
The data warehouse behind it contains financial product and market information from suppliers of mutual funds, variable annuities, and market data.
This information can be delivered to a broker's desktop using "push" technology.
LifeScript competes with a product from Sterling Wentworth Corp. of Salt Lake City, and MoneyStar competes with BrokerDirect from First Data Information Services Group.
Christopher von Schweinitz, product manager at MoneyStar Communications, said neither competing product ties point of sale modeling together with on-line data base information.
"This is where we run into the competitive edge," said Mr. von Schweinitz.
Companies using LifeScript include Norwest Investment Services Inc., Comerica Securities, FN Investment Center at California Federal Bank, First Security Investor Services Inc., and Dime Securities.
In its research, MoneyStar found "what was really important to brokers was historical data, to be able to display hypotheticals," said Mr. von Schweinitz.
Victor Whang, vice president of investments at Comerica Securities, said, "LifeScript allows a person like myself-financial planners, advisers, brokers-to instantaneously come up with an overall snapshot or picture of a person's future nest egg value and see if he can support a particular income stream at that time."
About 10% of Comerica brokers in Bloomfield Hills, Mich., are using the software. This year Mr. Whang expects it will be rolled out in three other areas in Michigan.
Chris Selland, research director of the Yankee Group in Boston, said modeling software and on-line market information can be powerful selling tools.
"Although MoneyStar is a small company that has yet to prove itself, it has hit on a good idea that puts it ahead of the competition," he said. "LifeScript is a nice solution for companies in the mutual fund field."
