In its tenth year, the May 2013 Planner Technology Report is an in-depth study of Australian financial planners and their technology needs. The study is based on a survey of 1,141 financial planners concluded in May 2013.

“At an industry level, planners’ satisfaction with their most-used platform increased for each of the 27 different areas that we measure,” said Investment Trends Senior Analyst Recep Peker. “Following last year’s record satisfaction, these increases have resulted in planners’ overall satisfaction with their platforms reaching the highest level we’ve seen in the ten years of this study.”

While platform providers have made many new enhancements in the last 12 months, the new lower-cost and flexible pricing models have been the most successful in driving planners’ satisfaction.

“netwealth had the largest increase in overall satisfaction, taking the top spot among platforms,” said Peker. “Planners interviewed were especially happy with its new low-cost Super Accelerator solution, with a number also citing international share trading and the availability of multiple insurance providers.”

The top three platforms by planner satisfaction were:

1. netwealth
2. Macquarie Wrap
3. CFS FirstChoice

“We find there’s a strong link between platform satisfaction and switching behaviour, and the most recent trends saw planners’ loyalty to their platforms reach a high point,” said Peker. “Only 19% said they would change any of the platforms they use if it were up to them, compared to a high of 32% saying so as recently as in 2008.”

Usability is the next frontier for platforms to address

As platforms address the gaps in pricing, the landscape of how platforms can help planners has changed.

“Especially for the past few years, the number one improvement planners have asked from platforms was more competitive pricing,” said Peker. “However, with the introduction of lower-cost solutions, planners now want platform providers to help with online usability, for improved business efficiency, better client reporting and review tools, which is mostly FoFA driven, and better adviser support.”

Westpac holds over a quarter of primary platform relationships

Westpac is the largest platform provider by primary planner relationships, with the proportion using a Westpac platform the most for new inflows increasing from 10% ten years ago to 26% as of May 2013. Westpac is followed by CBA which holds 19% of primary relationships, up from 9% in 2004.

On an individual platform level, CFS FirstChoice and BT Wrap are still the most-used platforms, followed by North and Asgard Infinity eWRAP, both of which achieved substantial increases to the number of primary relationships from 2012.

The four largest platforms by number of primary relationships were:

1. CFS FirstChoice
2. BT Wrap
3. North
4. Asgard Infinity eWRAP

Primary and secondary platform relationships now and ten years ago

The platform market has gone through significant consolidation over the last 10 years:

The post Planners’ satisfaction with platforms reach a ten year high appeared first on AdviserVoice.

BT Financial Group Head of Platforms Kelly Power said Infinity was a very attractive solution for a range of clients as it was fully featured but only charged clients for what they used.  

“Surpassing the $2 billion milestone in less than a year since launching in October 2011 is a testament to the strength of the Infinity offering,” Ms Power said. 

“Infinity is unique in the market as it allows clients to pay only for what they use, making it particularly appealing to those with low balances or specific investment needs. 

“The beauty of Infinity is as a client’s needs change and balances grow, you can add features or switch between Infinity and the full Asgard eWRAP without any CGT event or time out of the market.

“The highly competitive price and the fact there are no administration fees for cash and term deposits have also proved extremely popular.” 

Ms Power said Infinity had been designed with the Future of Financial Advice reforms in mind. 

“The fully customisable, flexible and transparent advice fee structure supports all advice propositions and fee arrangements, including fee-for-service,” Ms Power said. 

“Advisers are in control of customising the offering so it can help them service new and diverse segments such as self-managed super funds in the new regulatory environment.”

The post Asgard’s Infinity eWrap hits $2bn FUA appeared first on AdviserVoice.