Low-cost platforms a hit with planners
Lower-cost and flexible pricing models have been the most successful elements in driving planners’ satisfaction with investment platforms, according to a new report by Investment Trends.
The Investment Trends May 2013 Planner Technology Report, which was based on a survey of 1141 planners, found satisfaction with platforms has reached the highest level in the 10 years of the study’s history.
But while platform providers made many new enhancements in the last 12 months, particularly those relating to the Future of Financial Advice compliance, the new lower-cost and flexible pricing models have been the most successful in driving planner satisfaction.
While Macquarie Wrap and Colonial Fist State’s FirstChoice platforms occupied the top two spots in previous years, this year saw netwealth emerge as the highest ranked platform.
“netwealth had the largest increase in overall satisfaction, taking the top spot among platforms,” said Investment Trends senior analyst Recep Peker.
“Planners interviewed were especially happy with its new low-cost Super Accelerator solution, with a number also citing international share trading and the availability of multiple insurance providers.”
But market share still belongs to the big players, with Westpac remaining the largest platform provider in the Australian market.
Its BT Wrap and Asgard Infinity platforms are among four biggest providers, while CFS and AMP’s North platform also made it into top four.
“We find there’s a strong link between platform satisfaction and switching behaviour, and the most recent trends saw planners’ loyalty to their platforms reach a high point,” said Peker.
“Only 19 per cent said they would change any of the platforms they use if it were up to them, compared to a high of 32 per cent saying so as recently as in 2008.”
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