Advisers “highly dissatisfied” with tech incumbents
Financial advisers are demanding more from administration platforms, planning software and investment research vendors to help them deal with a “tsunami of disruption” to the industry caused by regulatory change and growing customer expectations, according to Adviser Ratings’ 2018 Financial Advice Landscape Report.
This sentiment, reflected through adviser satisfaction, saw major incumbent providers rated poorly in the survey. Conversely, accolades were showered on agile players responding to needed product and service enhancements, Adviser Ratings said.
Netwealth was a clear winner among administration platforms measured by satisfaction level, the company said, while AdviserNETgain and Lonsec were the providers of choice for the planning software and investment research categories.
Adviser Ratings said these findings highlight the risk to incumbent vendors if they do not respond correctly, while also encouraging the arrival of new players, particularly in the platform and financial planning software space.
According to the findings:
- Netwealth was the favoured administration platform for investment functionality, with Hub24, CFS FirstChoice, CFS FirstWrap and Macquarie Wrap rounding out the top 5 of 17.
- Netwealth was the favoured platform for insurance functionality, with Hub24, Praemium, BT Panorama and BT Wrap rounding out the top 5 of 15.
- AdviserNETgain had the most satisfied advisers in the financial planning software space albeit on limited licensee coverage.
- Lonsec edged out Morningstar for the most satisfied advisers in the research space.
“Technology and investment research providers to financial advisers are on notice to better serve their clients. Our survey clearly shows a high level of dissatisfaction with many technology players, at a time when advisers are facing other cost pressures, particularly in the areas of education and compliance,” said Adviser Ratings managing director Angus Woods.
“Advisers are looking for more technological and phone support from platforms and planning software to free up their time and provide compliant end-to-end solutions to achieve this.
“In addition, with increased adviser mobility between licensees and the growth in social media, advisers are becoming more influenced by their peers’ opinion when selecting a new platform or software solution.”
Recommended for you
Private wealth manager Escala Partners has increased its alternatives allocations to more than a third in the past three years, describing the asset class as offering “fertile ground” for diversification.
The Financial Services Council has recommended implementing a per capita limit per annum for financial advisers when it comes to the CSLR levy to allow them to expand their business without levy uncertainty.
DASH Technology Group has seen a 49 per cent uplift in its carrying value and is completing a new capital raising, having already received $30 million from growth investor Bailador.
At the halfway point of the year, consolidation pressures continue to drive financial services M&A with three areas identified as targets for asset and wealth managers, according to PwC’s mid-year outlook.
