With the platform price war appearing to cool off in recent times, professionals in the sector have suggested other battlefronts have opened up, such as service, performance and technology.
John Redmond APFS APP, Paraplanner at BPH Wealth, pictured below, said: “Competition will continue to be about more than just cost. Technology, for example, will have a big role to play in competition because I think more and more adviser firms are keen to improve the efficiency of their businesses and the technology associated with platforms (particularly their integration with back office software) should be a big agenda point.”
He said: “How easy a platform is to use - which is partly determined by the level of service they give - is a major factor in whether I will be happy using them. I think the competition on price is one thing, but platforms should remember that the service levels are hugely important and should not be compromised.
“The price of platforms is very important, because it is our clients who pay for the privilege of platforms. However, there is a balance to be struck here, because we want our platforms to be functional and easy to use (both for the client’s benefit and our own), and it stands to reason that the very low cost platforms are unlikely to be the most functional.”
Nathan Fryer CertPFS, managing director of outsourced Paraplanning firm Plan-Works, pictured above, said: “My view is that price is not, and should not be the primary factor in selecting a platform. It is service, and the sooner platforms recognise this, the better both in terms of the adviser and client experience.”
Most platforms largely offer the same thing, barring the odd tool, and the only tangible differentiator is service, he said, describing this as of “key importance for both advisers and clients alike”.
He said: “The ability to get the information you need or have a problem dealt with in a timely manner will always trump minor differences in software or tools.
“Platforms are businesses and therefore understandably focused on the bottom line. But they need a better understanding of what factors influence that bottom line, and it’s not just price.”
Read more from Mr Redmond and Mr Fryer in this month's edition of sister publication Financial Planner magazine, out now.