It took just three years for the UK to catch up with Australia – often on the back of Australian and New Zealand technology and systems. The retail distribution review was arguably the last nail in the coffin for the old ways of working.
When I joined Cofunds in 2006 it had just £8bn on the platform. When I left in 2013 the figure was about £50bn. Of course, Cofunds changed as it became part of a bigger business. That was inevitable.
From the beginning what really set Cofunds apart was the brilliant and thoroughly nice group of people I had the pleasure to work with. This has been evidenced by so many of these talented people being incredibly successful since moving on. Other businesses should look and learn: companies are only ever as good as their people.
Looking ahead
As for the future, the demise of the Cofunds brand reminds us that change is constant. No platform provider can rest on its laurels.
In the past, platforms built their reputations on making sure they were doing the dealing, custody and record-keeping well. Today that is taken for granted.
The future lies in revolutionising the client experience to make it as exciting for clients to look at their investment portfolio as it is to book a holiday. It lies in supporting client engagement with their money.
Some advisers might worry that the next-generation platform technology will make them redundant. Advisers do need to embrace new technology as it will complement their engagement with their clients. At some providers, apps are being developed that help people see clearly the projected impact of their financial plan and how small changes can make a big difference. Some use modern gaming technology to make the experience interactive and engaging.
Individuals can use it on their own. However, the experience is so much richer for the presence of an adviser guiding the client through the process, asking supplementary questions and answering questions as they arise.
Technology
Few advisers have the resources to build this kind of technology themselves. This is something I expect platforms to do more of, continuing the tradition of enabling advisers to do their job more easily and better.
The future lies in flexibility too – in providing advisers with the resources to meet the needs of a vast range of clients.
It is exciting to look ahead at what might be possible and astonishing to reflect on how far the industry has come in such a short time. Advisers and their clients owe Cofunds a great deal for that.
The platforms revolutionised financial planning and investment management. They made it cheaper for advisers to deliver their service, often increasing their profitability. They arguably made costs cheaper for clients too. Wrapper charges are substantially lower than they used to be also. The platforms enhanced transparency too.
