Investment is needed in platform offerings to ensure they can help advisers with day-to-day efficiencies and remain fit for purpose in the years to come.
And it’s those efficiencies that are becoming evermore important for advisers to realise as they seek to streamline processes further as margins continue to be squeezed.
Many are looking at technology outside of financial services too.
Technological advances are simplifying some aspects of providing financial advice but arguably could be complicating others.
As new technologies become available, advisers have more to consider and issues can arise with how different systems integrate and speak to one another.
It can take a significant amount of time to get the tech stack right and it can be all too easy to get distracted by the latest shiny idea. Time is a precious commodity for advisers. Understandably, several are putting in the groundwork now in a bid to reap the benefits later.
While doing that, it’s got some advice businesses thinking about moving into the adviser-as-platform space as they look to take greater control, better manage client assets and access more of the value chain. They will be looking to leverage their economies of scale but arguably many are struggling to work out how to do that.
Some will have taken the plunge and will have found their way or are learning as they go. Others might consider dipping their toe in the water.
No matter the model, platforms need to be straightforward, timely and accurate. It sounds a lot easier on paper than it is in reality.
It’s hard enough for the existing players to run a platform. And it’s not the easiest time to run an advice business either. Just the thought of putting the two together would have many advisers running for the hills.
Others will, of course, welcome the challenge. For some advisers it may be a case of the grass seeming greener to opt for the adviser-as-platform route. For others it genuinely will be.
And for many more, their desire for platforms to do what they say they will on the tin will be greater than ever before.
Chris Williams is a proposition director at Nucleus
