'Virtual vertical integration' to aid advice competition
New platform technology is enabling non-aligned advisers to compete with the “perceived advantages” of the “wealth institutions”, according to Hub24.
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.
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