Effective integration has been on the priority list of the advisers, paraplanners and administrators for too long.
This was reflected in recent research by Investment Trends. Happily, adviser satisfaction with platforms has reached ‘record levels’.
Four in every five rate their overall satisfaction with their platform as ‘good’ or ‘very good’, and 36% noted recent ‘valuable’ enhancements from their primary platform.
So far, so good. But more than half of the advisers surveyed said that greater integration of systems was ‘an important way’ they could improve their business. In fact, platforms better integrating with third-party providers was cited as a way they could add more value. Two-way data exchange with planning software was the top priority.
Greater efficiency leads to reduced time and cost to serve. Firms can deliver better experiences to more clients in less time. That means increasing the capacity to serve more clients or potentially serving lower value clients and helping to chip away at the advice gap.
While financial planning is by its very nature long term, business goals may be more focused on short-term results
Less friction and a decreased chance of errors contribute to reduced risk and better outcomes for clients. All of this speaks to meeting Consumer Duty requirements and operating with greater transparency.
So, if everyone stands to benefit from better integration, why are we not seeing more of it?
While greater and more efficient integrations directly and immediately benefit advice professionals, those who have the resources to create and develop integrations don’t see that same benefit instantly.
Creating systems that communicate better with the rest of fintech is a long-term strategy and many businesses live in a world of short-term gains. While financial planning is by its very nature long term, business goals may be more focused on short-term results and profitability.
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It’s much easier to prioritise all resource on developing your own technology and systems to build bigger and more beautiful walls in your Walled Garden.
Companies want to convince advisers their own garden is the most luscious, the most alluring and by-and-large the only one they require. But in the real world advice professionals want to curate their own advice process and this often means an overworked swivel chair, as they hop between systems, keying and rekeying data unnecessarily.
It’s essential to be realistic here. Integrations are about willingness not ability. The technology to do this has existed for many years; it isn’t a technological puzzle that needs working out or solving. There’s nothing to figure out.
The technology exists to make the lives of financial planning professionals a lot easier, but many platforms are choosing not to prioritise it. Or, as in most cases, they don’t own their own technology and are hamstrung when it comes to making a real difference with integrations.
It’s essential more businesses focus on what’s best for the adviser firm and not the lowest hanging fruit
Of course, there are some problems that are more complex and difficult than many would have you believe. But, in the main, technology providers need to compromise for the sake of the client. It’s about doing what’s best for the end customer, not necessarily what’s easiest or best for the service provider.
It’s essential more businesses focus on what’s best for the adviser firm and not the lowest hanging fruit or easiest improvement to make. That means using resource to engage with other businesses, sometimes even those considered rivals, to help create a more cohesive ecosystem for financial advisers.
Platforms work infinitely better when they’re integrated more broadly with the wider ecosystem of fintech and help advice professionals serve clients more efficiently.
No one benefits when platforms focus on basking in the brilliance of their own Walled Gardens.
Mark Sanderson is managing director – UK & International at Morningstar Wealth
