With the RDR demanding more explicit pricing models from platforms, HL has not yet had to reduce the pricing on Vantage, given its vast and loyal customer base and strong brand.
Yet Bernstein says there is now evidence to suggest consumers are increasingly placing credence on price over brand.
The broker cited January’s Platforum Consumer Insights research that revealed “a competitive price” was the top consideration for D2C investors when selecting an online investment service.
Until now, the biannual report found brand to be of higher importance than price.
“Increasingly, we lean in the direction that platforms are being commoditised.
“Whether or not this becomes true in the extreme – everyone’s revenue margins come down meaningfully and industry profits are competed away – it does seem clear that relative to an advice-led business a platform-administration business such at HL is at greater risk of commoditisation.”
Hargreaves Lansdown policy is not to comment on broker notes – whether buy or sell.
