Collaboration could be the best way for platforms to deliver a top quality service, according to Winterflood Business Services.
A recent Platforum report highlighted that maintaining a superior level of service has become a key consideration for platforms, as it found that poor or unsatisfactory service was the top reason advisers chose to leave platforms or transfer assets.
The platform market is undergoing a period of disruption and while these changes and the FCA’s Investment Platform Market Study Interim Report present challenges many platforms continue to perform well. In fact, the Lang Cat consultancy found total platform assets under management increased by 7.1 percent year-on-year in the first quarter of 2018 to £494 billion, while the advised platform market grew 12 percent to £371 billion over the same period.
Collaborating with outsource providers who provide fully scalable proprietary trading infrastructure is an effective strategy, as it allows platforms to focus on their capabilities, while creating efficiencies across the value chain, according to Darren Hepworth, head of service and delivery at Winterflood.
However, the platform and strategic partner must share strategic objectives and all employees must see their role within the context of building a stronger platform, because a shared vision can lead to a better culture within the firm.
Outsourcing where there is a technology gap is also effective, but it is useful to choose one who assesses tech trends and considers the impact disruption could have on the platform.
Governance and effectively managing market makers and liquidity providers is crucial. Firms must also have a clearly defined execution policy and detailed dealing procedures due to changes in regulation, which also applies to data management and GDPR implications.
Mr Hepworth said: “Successful outsource partners for platforms are those firms that have created a bedrock for delivering superior service levels by investing in people and processes.”
Winterflood Business Services, a division of Winterflood Securities Ltd, provides flexible outsourced dealing, custody and settlement services.