Recep Peker
SuitabilityHub brings fresh perspective to platform selection beyond just cost
Picking the right investment platform to partner with can be vital to the success of an advice business. SuitabilityHub, a financial product research software designed for the post-QAR world, aims to make that choice clearer and more informed, moving past the typical focus on fees.
After speaking with many advisers and licensees, it’s clear that many base their decisions on costs. The challenge? Explaining why a client should choose a certain platform when there’s a cheaper option out there.
“Our discussions with advisers showed a pressing need for a broader perspective on platform selection,” says Recep Peker, Founder and Managing Director at SuitabilityHub. “While costs are certainly important, there’s a multitude of other factors that advisers need to have on their radar, and we aim to bring those to the forefront.”
The platform functionality arms race is driving more nuanced propositions.
Platforms are not just about administration, custody, and reporting anymore. Most deliver a full suite of world-class functionality, while advisers in countries like the U.S. often need to plug multiple solutions together just to get the same capability. Strong competition between providers means proposition innovation is set to continue.
“We are now seeing many platforms in the process of evolving to play a more central role in an adviser’s practice,” said Peker. “This transition suggests a paradigm shift where platforms aren’t just tools but partners that assist advisers in delivering top-notch service.”
For example, SuitabilityHub analysis of recent platform enhancements reveals some platforms are continuing to invest into strengthening their ability to capture data and report on clients’ off-platform assets, which can be a great timesaver for advisers focused on high-net-worth (HNW) clients. While these platforms may be more expensive than the rest, the reduced manual administrative work and the benefits for HNW clients of seeing all their assets together in one place could justify the additional administration fees.
Meanwhile, some platforms are forgoing these bells and whistles and instead are doubling down on maximising advisers’ capacity to serve. They have been investing heavily in streamlining processes, digitising, and providing excellent service and support, and advisers focused on certain client segments such as retirees or the mass-affluent market may find these solutions more suitable.
Facilitating a more holistic approach to Best Interest Duty
SuitabilityHub empowers advisers to consider the unique needs of their target customer and then pinpoint which platforms can best meet these needs. This is all done through a guided decision-making tool which walks users through the process and enables them to demonstrate the steps they took to act in the best interest of their clients.
An interesting discovery from the SuitabilityHub research was when comparing leading platforms like HUB24 and Netwealth. At first glance, they seem quite alike, as they have a similar number of features. But a closer look reveals that only about 60% of their features overlap. Peker adds, “Every platform has its own way of distinguishing itself, which is why understanding those unique points can make all the difference in selecting the most suitable platforms.”
“We have seen many case studies that illustrate how your platform selection may vary if you choose them based on the features you need to serve your target market, rather than relying exclusively on fee analysis.”
A significant aspect of SuitabilityHub’s value proposition lies in its ability to offer a transparent analysis of platforms across their functionality, business metrics and cost. With over 500 features documented and continuously updated, advisers can fine-tune their selections based on their business needs and their clients’ expectations.
“We have a unique approach to the Best Interest Duty conversation,” said Peker. “SuitabilityHub is designed to facilitate a more holistic approach across three key stages. We enable advisers to first shortlist platforms based on those that have the features needed to serve their client. Next, we help them pick products based on what their client values in a platform business, be it financial strength, operational robustness or ESG policies. And finally, we look at the total platform cost to the client’s family, including transaction fees, interest earned on cash and family linking benefits.”
Since its introduction to platform providers and licensees in early 2023, SuitabilityHub has garnered significant traction and is gearing up for a broader launch. “The early reception has been incredibly positive,” Peker comments. “We’re excited to unveil SuitabilityHub to the wider adviser community, ensuring they’re equipped with the insights and tools needed for informed decision-making.”
