The platform market is set for a big change-up as most UK advice companies are thinking of scrapping relationship with their provider.
According to Seccl, the Octopus-owned custodian and platform technology provider, 69% of firms are considering parting ways with their platform over the coming 12 months.
When asked to what extent they agree or disagree that their firm is on track to end the relationship with their platform over the next year, 32% strongly agreed, while a further 37% agreed somewhat.
Some 68% of firms said its platform focuses more attention on winning new business than servicing existing clients and 74% agree that their teams must often perform tasks that they would expect their platform to do for them.
Also, 67% feel like their platform doesn’t understand the issues they face.
Just over two-thirds (69%) said that platform providers tend to offer great customer service in the sale and/or onboarding process, but that it deteriorates over time.
‘Feel let down’
Daniel Marsh, head of customer at Seccl, said that the advice market is “seemingly on the cusp of significant switching activity”.
“We regularly hear from advisers and their teams that they feel let down by their existing platform arrangements, as they are forced to pick up the slack of poor technology, fight for continued attention, or be on the hook to explain platform pricing decisions that are out of their hands.
“These findings put some stark numbers to that sentiment – and suggest that more and more firms might look to wrest back control of the relationship over the coming months and years.
”It certainly feels like we’re witnessing a pivotal shift in the market towards the demand for more efficient and seamless digital journeys. For some advisers, that might mean switching to a provider built on cutting-edge tech; while for others it might mean taking even more control by owning more of the total platform experience.”
Seccl surveyed 250 UK-based employees who use an investment platform as part of their role within financial advice companies, or discretionary fund management companies that use a platform provider to manage their client’s investments.
