Advisers’ call for stronger support services and reliability in competitive platforms space

Leading research firm Investment Trends has released the second part of its latest 2022 Adviser Technology Needs Report, which focuses on the evolving technology needs of financial advisers specifically insights on their usage of platforms.

In the latest report, the percentage of new inflows by advisers through platforms decreased slightly to 71% on average, down from 76% in 2021, while the long-term trend remains stable with 73% expected in three years’ time. This year, the use of multiple platforms has reached a 10-year record high average of 3, with advisers increasing the proportion of new business directed to their secondary platform at the expense of their main platform.

The use of multiple platforms by advisers also means that platform integration with their planning software is also increasingly important. In choosing a platform, advisers have responded that they continue to prioritise providers based on fees and charges and increasingly those who can support their need for efficiency (45%, up from 34% in 2021) and provide reliable technology (43%, up from 30% in 2021).

“While the longer-term trend in net inflows is promising, the competition for adviser relationships is fierce in an already tightly contested platform space. It’s not surprising to see the increased average of the number of platforms used hitting a ten-year high given the prioritisation of efficiency and reliability by advisers now more than ever”, according to Dougal Guild, Research Director at Investment Trends.

Industry-wide, overall adviser satisfaction with platforms has fallen (67%, down from 72% in 2021), with advisers looking for more efficiency gains from their providers. Lack of support has become the leading reason for client attrition (34% of advisers stopped using a platform in the last 12 months) and advisers are calling for more focus on areas relating to administration accuracy and service, such as the contact centre staff’s technical knowledge, turnaround times for transactions, complaints handling and problem follow-up timeframes.

“In this highly competitive market, it is imperative that platforms are listening to the needs of advisers. With fees and capabilities becoming more consistent across providers, advisers are placing an increasing focus on platform reliability and quality of service support”, added Guild.