Six years ago we released a white paper, The Platform Machine: Tuning for Efficiency. In it we discussed that, in spite of ever increasing levels of Assets under Administration, all was not well in platform land. Revenues were rising across the board, but costs were outstripping them, in many cases significantly so.
As seen in Wealth Adviser on 13/06/2018, Professional Adviser on 13/06/2018, Money Marketing on 14/06/2018, Investment Life & Pensions Moneyfacts on 11/09/2018, IFA Magazine on 11/09/2018, Money Marketing on 19/06/2018
Now, five years later, we are releasing Giving your platform wings, a white paper re-evaluating the current platform industry.
These are our key findings:
The platform industry has taken off over the last 5 years but, for the majority, significant profits still remain out of range.
- Margins have fallen, regulatory scrutiny has risen; platforms have had to deal with the turbulence.
- Automation is key but it can be expensive, so platforms need to be clear where they will get the most thrust.
- That means understanding where costs are high, where they are likely to get higher and how to bring them safely back down to earth.
- Outsourcing can get you off the ground faster but it will add to your payload over time.
- The price of flying is key but don’t forget the cost of your ground crew – they can ground your profits too if you’re not careful.
There is undoubtedly profit to be made in the platform sector, as evidenced by a few of the current high-flyers. The question is whether the rest of the pack can keep up – and how they can do so.
