The platform provider – which is soon to merge with non-aligned licensee Paragem – said the “right technology” can allow smaller licensees and advisers to gain access to benefits usually afforded by alignment to larger groups.
“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 Hub24 spokesperson Wes Gillett.
Non-aligned players should be utilising platforms that provide more than simply a “one-dimensional product transaction” and allow access not only to a wide range of investment and insurance options but also to SMSF administration, CRMs and “front end advice tools”.
“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’,” Mr Gillett said.
“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,” he said.
So the article says that the advantages of the wealth institutions are perceived, so vertical integration is not the issue that should be complained about?
It goes on to say that using new platform technology will counter this perceived advantage for non aligned advisers?
The non aligned advisers by using this new platform technology will benefit and be able to compete, this is surely good.
But I wonder about the products that are going to go into this new technology platform, will the non aligned advisers be able to push this product, I mean advice clients that these products will suit their best interests, or will there be a vertically integrated like conflict develop with the non aligned advisers as they use these products in their APL at the expense of other products in the market?
It can really be a catch 22 situation depending on whatever argument you wish to push, I mean run with.
How can we call the ownership of a dealer group by a product provider ‘non-aligned’?
I’m not sure the price race has been run with platforms still charging between 35 and 90bps. There is a thought among institutional platforms that platforms will charge zero for administration. That will be the advantage of vertical integration. Will be interesting to see what move someone like HUB24 makes then.