Difference and Differentiation: What next for investment platforms? - Paper - Page 15
There is already a move from large, monolithic,
enterprise solutions that look to supply everything a
business needs, to a microservice-based architecture.
The premise is that, by breaking down a large
application into smaller, more discrete, components,
there are then benefits around scalability, flexibility,
and resilience – each service component can be
handled independently and should allow a business to
orchestrate services from different providers to deliver
the outcomes they want. The cautionary note here is
in the added complexity that brings in planning and
managing those services. Setting out an architecture
based on a clear and robust business capability view
allows for a common language and understanding
of the ‘what’ and ‘why’ for each service, that both
business and technology users can grasp to enable
better decision-making and communication. Something
that is especially important where third-party solution
providers are involved.
Digitisation of processes will continue and as
integration between adviser and platform solutions
improves, driven by a desire to improve efficiency
within platform operations and to use this as a
differentiator to adviser firms, then platforms fall even
further into the role of utility service provider.
As access to, and availability of, data becomes even
slicker and ubiquitous, we may find that the platform
market fragments, as advisers are better able to
handle multiple product providers whilst maintaining
a consolidated client view from within their own CRM
and advice systems. The platform market not only
comes full circle in platforms-as-providers, but also
advisers going to multiple providers to deliver better
client outcomes.
A platform, as we currently understand it, may
disappear and instead become the digital framework
and infrastructure that brings multiple parties
together, working to offer connected services and
value exchange – the vehicle by which customers are
connected to advisers, tax wrappers, and investment
solutions. Proliferation of APIs and microservices
should allow construction of personalised journeys
and best-of-breed solutions, whether for a selfdirected investor or an adviser working for a client.
To compete in this world, a clear vision of business
purpose (who you are) and how you support your
customers (what you are to them) is essential.
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