Financial advisers are conducting more business through platforms as the buoyant sector continues to benefit from the shift to digital-first advice models, new research shows.
This year’s annual CoreData Research platform study shows nearly half of advisers (44%) are set to increase business on their main platform over the next 12 months — up from 35% last year.
The study, which surveyed 661 respondents in June, also found advisers are using platforms more frequently. Over seven in 10 (71% vs. 68% in 2020) now use platforms daily. Daily usage among advisers focused on mass market clients* has increased particularly strongly (73% vs. 63% in 2020).
These healthy fundamentals come as advisers increasingly adopt a multiple platform strategy. Nearly one-third (31%) now use three platforms – up from 27% last year – while a higher portion use seven or more providers (5% vs. 2% in 2020). Furthermore, a slightly higher percentage of advisers plan to add at least one additional platform to their proposition over the next year (15% vs. 13% in 2020).
“The pandemic-fuelled shift to digital-first business models has enabled platforms to further embed themselves into advice practices,” said Andrew Inwood, founder and principal of CoreData. “This is underscored by stronger expected platform flows, higher usage figures and an increased appetite to use multiple providers.”
As advisers use platforms more frequently and look to transact more business through them, the service element has become all-important. This year, service is the prime driver (23% vs. 16% in 2020) in the Satisfaction Driver Model. Last year, retirement advice services was the number one driver.
Elsewhere, annuities and income drawdown (25% vs. 32% in 2020) remain the most desired products on platforms, although demand has fallen from last year. This is followed by full SIPPs (22% vs. 20% in 2020) and DFM services (19% vs. 18% in 2020).
Interestingly, investment trusts — not included as an option in previous studies — are the fourth most popular product on platforms with advisers (15%). Meanwhile, adviser demand for ETFs has fallen (8% vs. 10% in 2020).
This year’s study also shows that nearly half (45%) of advisers increasingly consider tools and support services to help manage vulnerable clients when choosing a platform provider. However, this is down on last year’s figure of 53%.
