Much has been made of the perceived advantages afforded wealth institutions with their vertically integrated business model, and ability to shift and clip margin from every element of the value chain. From funds management through product manufacturing, administration and distribution, the big players were seen as the only beneficiaries of vertical integration.
The right technology can achieve similar benefits for licensees and planners.
“While the advantages of scale and integration enjoyed by institutional wealth firms are clear, technology can help bridge that gap in the non-aligned advice market,” said Wes Gillett from HUB24.
Good platform technology can facilitate an extension of value for all channel participants, co-owned or otherwise.
The new platform world can facilitate a licensee’s entry into administration by quick and cost effective bespoke white labelling of wrap offerings.
Once the scope is clear, a white label should take no more than 4-6 weeks ideally. The same technology can now integrate bespoke investment solutions for those same enterprises, enabling further value creation.
New and nimble independent players like HUB24 also support extension of service and value for individual practices by offering broader investment, insurance and lending choices and tighter integration with SMSF administration, front end advice tools, and CRM applications. These same technologies can also assist with efficient marketing and client engagement.
This advanced technology can be deployed to fund managers too
Fund managers can win as well with better technology that integrates with the administration platforms.
“Through our ManagerHUB, fund managers are able to quickly and easily facilitate their entry into the managed account world and reduce business overhead in managing client assets,” according to Wes.
Platform price wars are largely over … integration/functionality is the new challenge
“I believe it is important for our industry to fundamentally change the context of a platform from a one-dimensional product transaction and reporting engine into a total business solution that can broaden service offering, increase revenue and realise the benefit of ‘virtual vertical integration.’
“It’s an exciting time for technology players in our industry, and the pace of change will ensure speed and flexibility become the hallmark of success. The price race has largely been run, with cost effective administration accessible to all. The focus now is turning to integration and functionality, and how technology can leverage all elements of the value chain for licensees, advisers and clients alike,” said Mr Gillett.
