Hub24 extends reach into IFA market

Platform provider Hub24 has ramped up efforts to target independent and non-aligned financial advisers, saying this is a growing market as banks become less relevant.

Speaking to ifa, Hub24 managing director Andrew Alcock said the company is investing in more staff to develop relationships with non-aligned and self-licensed advisers.

The move comes as more advisers become self-licensed and less interested in being associated with major banks, Mr Alcock said, adding that the vertically-integrated model is being challenged.

“The market for us has changed a little bit. We still chase the large white labels and dealer groups, but what is interesting is there are more and more small groups taking control of their destinies and choosing the right platform for their clients,” he said.

“We're extending our reach into it. We've now got local salespeople on the ground in each state to target those small practices, which are self-licensed or part of a small dealer group.”

Mr Alcock said that 40 per cent of Hub24’s inflows are coming from large white label relationships, with 60 per cent coming from the independent and non-aligned space.

This is a big shift from two years ago, when 60 or 70 per cent of flows came from large groups, he said.

“We obviously value our large clients, but the market is changing. Advisers are not necessarily being aligned to large groups and are able to do their own thing and get a great quality solution,” he said.

Further, Mr Alcock said that Hub24 values the fact that IFAs are not “distracted”.

"They are not distracted by the noise of what is going on with the large players and advice scandals,” he said.

“They're focused on their clients.”

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