Platforms exist to make advisers’ lives easier. With advice businesses facing increased regulatory pressure and what seems to be a constant flow of policy changes, that purpose is more important than ever.
As advisers adapt to support the needs of their clients, so too must platforms.
The platform market has undergone a lot of change in recent years and to remain relevant more change is inevitable.
Debates around the future of platforms tend to focus on pitting different models against each other as if only one type can be victorious. Traditional platforms versus disruptors. Or suggestions that adviser-owned platforms will take over the sector.
But could this way of thinking be preventing the sector from moving forward? The reality is likely a case of the different models learning to exist alongside each other.
There is currently space in the market for a variety of platforms. One type isn’t necessarily better than another. Each will have their opportunities and challenges.
All business models must continue looking at what they offer and how they offer it to ensure they effectively serve advisers and their clients.
When we consider what’s next for platforms, in some regards, it’s a case of going back to the future. Or at least back to where it all began.
Advisers want and need platforms to get the basics right so they can deliver good outcomes for their clients. That has always been a priority for advisers, but the consumer duty has brought it into sharper focus.
Bells and whistles are nice to have only if the core functions are in place and work as they should.
And it’s important to remember there’s no right or wrong answer when it comes to how advisers want to operate their business. They will be the ones to decide what works best for them.
There are pros and cons of going down one route over another. So why not have different solutions for the various types of adviser segments? Why not support advice firms in how they want to interact with platforms, rather than insist on one option being best for everyone?
Whether that’s using a modern fully functional platform or if they require a bespoke white label solution. Or maybe somewhere in the middle?
We’ve been paying close attention to the trends in the advice market, from consolidation to the adviser as platform model. It’s these trends that have sparked much of the debate.
Our approach has certainly got people talking as we come at it from a different perspective. Trends such as consolidation can represent an opportunity for growth. The same is true for the core market we already operate in.
The landscape is constantly evolving. We could see even more consolidation in the market and perhaps super consolidation as the consolidators consolidate.
