Indeed, the more that parts of the advice process can be automated, the more a business can be scaled, as well as increasing the capacity of advisers to take on extra clients and help fill the advice gap, notes David Scholes, sales manager at FE Fundinfo, which owns cash flow planning software CashCalc.
“Additionally, efficiency in an advice firm, facilitated by these integrations, leads to fewer errors in financial planning and management. This reduced margin for error means that clients can have greater confidence in the accuracy of their financial strategies, minimising the risk of costly mistakes.
“[Furthermore], an efficient firm can potentially offer more competitive rates to clients, making financial advisory services more accessible and cost effective.”
The growing role of bolt-on micro-services
As well as integrations, some platforms are offering ‘micro-services’.
Dima Dimitrova, modular product manager at Bravura – the owner of FinoComp, which develops micro-services for platforms – describes them as tools that are helping platforms respond to the changing requirements of advisers and their clients.
“They enable the addition of new tools and targeted functionality. Because micro-services are built on modern, API-rich technology, they are what’s called ‘plug in and play’ pieces of software.
“This means platforms have greater flexibility to tailor their offering for advisers, enabling them to quickly deploy new tools and functionality to help improve client outcomes, as opposed to undertaking sometimes lengthy re-platform initiatives.”
Ross Easton, head of platform proposition at Scottish Widows, says the use of APIs (application programming interfaces) to integrate with tools has opened a “myriad of possibilities” for platforms to collaborate and enhance functionality for advisers.
“Scottish Widows Platform enables advisers to single sign-on from our platform into the tools of their choice. Examples include client engagement technology, financial and goal planning software, suitability reporting, research tools and utilities. These integrations enhance the efficiency, connectivity and value we provide to advisers on day-to-day tasks and client interactions.
“When speaking with advisers, there is a strong feeling that no one can do everything well, so it’s more about advisers being able to build their own ecosystem using APIs and integration to connect to the platforms, back-office software and tools of their choice.
“In this context, rather than argue platforms are moving towards becoming a one-stop shop for advisers, I see them as the hub that connects the adviser’s chosen ecosystem, making it quick and simple to access a growing number of features by reducing the effort needed to navigate between different systems.”
