The provider’s research found the growth of platforms shows no sign of abating with four in five (86%) advisers stating that platform technology makes the process of giving advice more cost effective. A similar proportion (82%) believe that it makes the process more straightforward.
The Adviser Attitudes Report entitled Technology in the Financial Advice Market also revealed that only 2% of advisers said that they expect to place less business on platforms. Yet two thirds (62%) said they would remain steady, using the platform neither more nor less.
Meanwhile, total assets under administration on platforms increased by 6% in the first quarter of 2017 to £520bn. By 2021 it is expected to surpass £1.2trn, according to Aegon.
Steven Cameron, pensions director at Aegon, said: “The new wave of technology in the financial services sector is having a transformative effect, offering opportunities for innovative products and services.
“Platforms in particular are changing the industry, and it’s clear that advisers are positive about the possibilities. Platforms streamline their workloads, but more importantly for them, they enable advisers to better service their clients.”
Benefits are clear
Advisers are seeing clear benefits of platform technology, with two thirds (66%) stating convenience and time efficiency as the main reason that they favoured platforms. A similar number (63%) said it was the wide range of investments available to clients.
More than half (57%) of advisers see cost efficiencies that they are able to pass on to clients as being the greatest benefit of the technology.
However, the ease of processing and making paperless transactions was the favourite for 86% of advisers. Other key benefits included lower charges (39%), making financial planning more straightforward (36%), and the speed of processing (34%).
One style doesn’t fit all
The suitability of a platform can vary depending on the client. A quarter (24%) of advisers said that that they see it as a suitable option for all clients, while two thirds (65%) would judge it on a case-by-case basis.
Cameron added: “The significant growth of defined contribution schemes and the popularity of the pension freedoms, with many more people remaining invested during retirement, mean the importance of advisers supporting investment decisions continues to grow.
“This has helped shape the evolving platform market, and platform providers have a central role to play in working with the intermediary community to ensure that platforms continue to offer the best possible tools to support advisers and their clients.”
