A new benchmarking report published today by The Platforms Association, the trade association for the investment platforms sector, has highlighted huge optimism for growth across the industry with platforms looking to accelerate automation across their businesses and a strategic focus on AI.
In partnership with consulting and benchmarking partner, Alpha FMC, today’s inaugural Platform Horizons Report is a comprehensive guide to the industry’s operational landscape, technological capabilities, and strategic priorities. The report provides unprecedented insight into our sector taking views from firms representing around 71% of UK attributed assets under administration (AUA) with £928bn in AUA, representing approximately 10.1 million UK customer accounts and 14.2 million accounts globally.
The key headlines from the report show:
- There is a surge in tech spending with a focus on automation, data analytics and AI with tech investment forecast to grow at double the rate than that of operations. Leading firms allocate almost twice as much of their IT budgets to innovation (61%) as to BAU costs such as personnel (32%), reflecting greater agility and efficiency. Firms behind the curve are more burdened by legacy systems and day-to-day costs, leaving less room for transformative investment.
- Growth is a key priority, but firms with slower onboarding times (six days or more) risk added costs and weaker customer trust if they scale without tackling inefficiencies. A 3% rise in operational costs from 2023 to 2024 reflects both strategic investment in scalability and a drive for greater long-term efficiency, even as growth is expected to slow this year.
- Automation is the biggest strategic priority for most companies followed by data & analytics and cyber security. Interestingly, while AI is the hot topic of the moment, it is underleveraged in the industry. However, almost nine-in-ten firms state AI as the number one priority over the next one to three years.
- The FCA’s Consumer Duty is the number one regulatory priority for the sector. Unlike other regulatory requirements, Consumer Duty represents a fundamental shift in how Platform businesses operate. It cuts across propositions, pricing, servicing, communications and operational models. Overall, the growing regulatory requirements mean most UK platforms allocate 16-30% of change activities to regulations, underscoring the significant impact of the changing regulatory landscape on platforms.
Keith Phillips, CEO, The Platforms Association: “Our inaugural Platform Horizons Report demonstrates the growing maturity and forward momentum of the UK platforms industry. What’s particularly encouraging is seeing how our industry is proactively embracing transformation rather than simply reacting to challenges. The fact that 79% of firms are prioritising automation and innovation, while simultaneously dedicating substantial resources to regulatory excellence through Consumer Duty implementation, shows an industry that is both operationally sophisticated and genuinely committed to delivering better outcomes for savers and investors. The emergence of leading firms who have achieved the ‘zone of optimisation’ – allocating 61% of their IT budgets to strategic change rather than maintenance – provides a clear roadmap for the entire sector’s evolution.
This benchmarking study, the first of its kind for our industry, reinforces that UK investment platforms are not just keeping pace with global financial services innovation, but are actively setting the standard for how technology, operational excellence, and regulatory leadership can work together to build a more accessible and efficient investment ecosystem for millions of UK savers.”
Scott Lee, Senior Partner & Head of Wealth Management UK & Ireland, Alpha FMC: “We’re proud to have partnered with The Platforms Association on this important piece of industry insight. The Horizons Report sets a new benchmark for understanding the sector’s strategic and operational priorities. It’s clear that automation, AI, and regulatory change are reshaping platforms at pace. The level of transparency and collaboration in this benchmarking report will be critical in helping firms navigate complexity and deliver better outcomes for clients. As the industry’s transformation partner, Alpha FMC is committed to supporting platforms as they accelerate towards greater efficiency, resilience, and innovation.”
