Our research with advisers identified lack of systems integration as the number one challenge to adviser firms becoming more automated and digital. So we have partnered with Origo to look at how platforms and adviser fintech can become better connected. You can find out more by downloading A Connected World: The future of platform integrations here.
Platforum has also identified two different approaches to connectivity that platforms can take in the longer term.
Ecosystem architects:
These platforms want to integrate with lots of back office and other fintech providers to help advisers to grow and scale their businesses. They are likely to be either large players or platforms that see themselves as offering a utility service. These platforms will move to two way data feeds and pursue integrations across the board to join up different processes and tech providers. Ecosystem architects are less concerned about owning adviser and client data; they see themselves as facilitators.
“Expedia, Amazon, Uber – across different sectors marketplaces have emerged… the question is who is prepared to make the investment to bring the benefits of ‘big data’ to advisers and customers to build the marketplace of the future for financial advice.”
Preferred partners:
These platforms fear becoming ‘black boxes’ and will carefully choose the nature of the integration and who they partner with. They are unlikely to pursue two way data feeds although they may integrate with a number of back office providers. They feel that they add value by offering their own services and tools.
“The value add is in our technology. If something becomes all-encompassing then we wouldn’t agree to it. We don’t want to be a black box. We want to use the best of our technology and the best of their technology. We don’t want to be a nominee capability.”
Whatever model platforms choose to pursue, they will look to support advisers by automating the easy stuff so that advisers can concentrate on the added value that the human touch provides.