Platforms

As the pandemic has begun to recede into the rearview mirror, the platform sector has benefited from the return to growth and the increasing number of assets that have come its way.  

The surge in business seen in the first quarter of 2021 has far from fallen away entirely: advised platform flows fell 21 per cent between Q2 and Q3, according to the Lang Cat, but figures for the third quarter remain some 75 per cent higher year on year.

That has been a boon for the sector at a time when merger and acquisition activity has remained at elevated levels. Private equity firms have taken a particular interest in platform providers over the past 2 years, resulting in ownership changes across the industry.

In terms of service provision, the pandemic challenges of the past year provided platforms with the opportunity – or rather the urgency – to improve digital offerings. The long-awaited arrival of e-signatures was one change that was hurriedly ushered in. But some went further.

Novia (itself bought by private equity firm Anacap last year) was awarded five stars this year as well as winning the Most Improved award.

Of the company’s response to enforced remote working, chief executive Patrick Mill says: “We responded instantly to this by making it simpler to submit instructions. Going beyond e-signatures, we created signatureless forms and a trusted submission method via secure email.” 

To address the risks associated with heightened fraud activity, it introduced a secure, digital, verification function, enabling biometric verification of bank details on smartphones. Security when using the system was improved, too. Novia introduced multi-factor authentication, introducing an extra layer of security at the log-in stage, by using a code generated on an app running on a mobile device. 

The company moved more processes online, making it easier to allow money to be transferred from a general investment account to an Isa. It also enhanced its CGT calculator, so that advisers could check potential scenarios before making any sale requests.  

In another example of its ability to keep things moving, it reported that there were fewer than 10 days in the year where the company’s turnaround times exceeded five business days.  

As advisers continue to reassess their platforms’ offerings – and, in some cases, consider launching their own platforms instead – providers will be aware of the need to demonstrate further improvements in 2022.