Mill says one way that advisers may see this play out is for platforms to "work deeply with a narrow range of fund managers to innovate products designed for the platform environment". Such partnerships, he adds, can "harness the platform data set to reduce cost and improve personalisation for customers".
There is a divide between retail and institutional platforms when it comes to what can be offered to clients.
While retail platforms have evolved from simply offering funds, some still struggle with certain equities, investment trusts and even exchange-traded funds or smart-beta products.
This is despite phrases such as 'open architecture' being bandied around the platform industry for the better part of two decades.
Back explains: "In the institutional platform space, 'open architecture' tends to mean just that: not only liquid assets but also illiquids, such as private equity and hedge funds."
So while it might not be on the cards for 2022, advisers may, by 2025 or thereabouts, be able to use platforms to put together an increasingly personalised portfolio from a much wider range of regulated retail investments.
However, Kenny is less enthusiastic about adding things for the sake of it. She says: “Client demand and suitability for retail investors will determine what are the right and appropriate products to be accessed via platforms rather than what appears to be fashionable and trendy to talk about.”
Other platform developments
One of the most important things to make sure platforms get right is customer service, whether direct or advised.
Kenny says platforms are still failing to get this right, so regardless of all the "whizzy innovation, product additions and potentially exciting synergies achieved by consolidation", developing a low-friction, seamless customer experience must be made paramount.
She explains: "For clients at the start of their investment journey, platforms must be the facilitator of investing and engage investors much better than they do today via an effective online experience.”
Quilter's Tiller states: "Platforms must respond to market forces and customer demand by continuing to improve their propositions and technology and by moving into areas of the value chain where opportunities exist."
Service is also a mantra for Mill.
"The challenge facing all platforms is to deliver service today while preparing for the significantly more demanding requirements users will have tomorrow," he says.
Failing to get the optimum balance between insourcing and outsourcing technology, servicing and innovation will be a huge hinderance to those platforms that get it wrong – and awful for the adviser and client.
A platform that has a core engine and can design around this by sourcing the very best components from other suppliers can create a better long-term solution for advisers and their clients.
