GBST rolls out platform for $100
By John Wilkinson
GlobalBanking and Securities Transactions (GBST) has launched a low cost platform called Front Office and is offering it to advisers with pricing set at $100.
GBST chief executive officer Stephen Lake says most of its competitors are charging from $3,000 upwards, and the group is setting the pricing at $100 because it already has a large number of companies wanting to access the platform for distribution. He says this group includes Adelaide Bank and some of the industry’s margin lenders.
Lake says the cost has been kept low by charging product suppliers to have their products on the Front Office platform, which covers the technology costs that advisers normally pay as part of their access fee.
“The service is subsidised by people looking for distribution, so it is self-perpetuating. The more distribution we get, the more suppliers want to use it and that further cuts costs,” Lake says.
The Front Office platform will offer advisers access to a range of products, as well as direct share trades through a number of brokers.
GBST processes and settles about half the total turnover of the Australian Stock Exchange and the New Zealand Stock Exchange every day through its SHARES software.
“What we are offering is a shopping hub (platform), which will enable the adviser to cherry pick the services and products they want for their clients,” he says.
Lake says the battle for market share in the platform industry is heating up, with new technology stoking the fire.
“This battle will burn off any illusions that growth is going to walk in the door. On the edge of the battle at the moment are the major banks, which face significant product risks as technology allows firms closer to the client to chose products and services.”
Lake says the banks might be left out of the equation, as the financial planners use technology to go straight to fund managers for margin loans, cash management trusts and more.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
