What do advisers look for in a platform provider?
Safety, trustworthiness and valuable customer experience are the top three most important attributes for financial advisers when selecting a platform provider.
BT’s annual Adviser Sentiment Index 2024 surveyed 260 Australian advisers to identify the 10 key features that they value when choosing a specific wealth management platform.
When asked, “How important is it that each statement is true when selecting a provider to support?”, an overwhelming 96 per cent of advisers under age 50 and 93 per cent of advisers over 50 chose safety and security.
Some 91 per cent of advisers under age 50 and 97 per cent of those over 50 said trustworthiness and honesty were crucial aspects. The third most popular attribute, valuable customer service, was selected by 85 per cent of younger advisers and 93 per cent of the older cohort.
Reflecting on the findings, Sharyn Baker, head of service and operations at BT, said: “What’s remarkable about this year’s findings is that the attributes that advisers value the most are the less tangible elements of the user experience.
“Safety, trustworthiness and customer service rank above other attributes related to products and price. At a time when there are heightened geopolitical tensions and market uncertainty, these experiential elements of service are leading advisers’ decision-making.”
Interestingly, being an industry leader saw the lowest ranking from those under 50 and second-lowest from those aged over 50. Just 31 per cent of younger respondents chose this attribute, alongside 45 per cent of older participants, indicating that a platform’s popularity or use by an advisers’ peer is less of a factor in selection.
Following the top three qualities, other valuable attributes for advisers choosing a platform provider included offering good value for money (83 per cent for younger cohort and 91 per cent for older cohort) and providing products and services that meet the needs of advisers (81 per cent of younger respondents and 86 per cent of older respondents).
Being an expert in wealth products and services, an innovative company, an expert in investments, and an expert in managed accounts were lower down on the list for advisers.
A recent Money Management feature explored how platforms have a “once in a generation” opportunity at the moment, as the rise of self-licensed financial advisers prompts advisers to select their platform of choice which typically occur every six to seven years.
In its Australian Financial Advice Landscape report, Adviser Ratings found HUB24 and Netwealth were in first and second place for the top platform, rankings unchanged for the past four years, followed by CFS FirstChoice and Mason Stevens. In fifth place was new entrant CFS Edge, which was launched last year.
“Platforms are currently experiencing a crucial growth phase with key decision-making underway by practices and licensees on their technology stacks, including platforms,” the report wrote.
BT’s Adviser Sentiment Index 2024 also highlighted the key obstacles that advisers continue to face, particularly as three-quarters of advisers struggle with staff recruitment.
AUTHOR
Jasmine Siljic
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