After figuring out the kinks in its North service, AMP is looking to deliver a platform that prioritises retirement solutions and is relying on insights from its advice business to drive its retirement solutions.
AMP Australia chief executive Scott Hartley tells Professional Planner North is a fundamentally good, adviser-centric platform but acknowledged improvements were needed when he joined.
“The problem that I found when I joined was pricing was uncompetitive which we had to fix [which was done April 2021],” Hartley says. “We had underinvested in the platform for a period and we were lagging competitors in some of the features and capabilities of the platform.”
Since he joined, Hartley says there has been significant investment and “continues to be a significant investment in the platform”.
With numerous platforms on the market, each needs a point of differentiation and Hartley says retirement will be North’s.
“The industry has focused heavily on accumulation, but there’s not enough innovation that has happened in the retirement space.”
Working in advice gives AMP a “natural advantage” for designing retirement solutions, Hartley says.
“It’s hard to lead in retirement without an advice business because you don’t understand the adviser perspective without that.”
Hartley wants the organisation to be known for maximising client income at retirement.
“Other retirement products have failed because they haven’t factored in the important role the adviser plays in creating solutions for clients.”
Making new friends
To grow North outside its vertical network, AMP has broadened its client base to include independent financial advisers.
In its FY22 results AMP stated it received 49 per cent of inflows from IFAs and Hartley says they have responded well to the new look AMP.
“We’re getting into more advisers’ offices because what we’re making clear to advisers is we’re a new AMP,” Hartley says. “Forget what you thought about AMP of the past, we are open to business with everybody.”
Acknowledging recent findings from Investment Trends that advisers are using an average of three platforms, Hartley wants North to become the sole platform advisers need.
“It’s quite a job to stop using one platform and start using another. What’s the compelling reason to change platforms? For us, the point of differentiation will be retirement solutions.”
Claiming new ground
The platforms space has been hotly contested, with proposed mergers for the players and the sale of BT expected to be completed soon.
AMP won’t rule out acquisitions in the platforms space entirely – “never say never” Hartley says – but it’s not a priority and the platform business isn’t in a position where scale is an instant win.
“Based on the research we’ve been able to get a hold, we’re one of the most efficient platforms in the market today,” Hartley says. “There’s more we need to do – I wouldn’t declare victory in terms of being perfect – but we’re very efficient relative to others.”
