UK Back-Office Systems and the Future of Financial Advice

By Next Wealth | 14 November 2023 | 3 minute read

Within the ever-changing financial advice industry, a seismic change is expected to reshape advice firms’ structures over the next five years, according to our most recent research, “Delivering Operational Leverage.” The shift is expected to change the ratio of planners/advisers to clients from 1:94 to 1:250, as well as the ratio of fee earners to non-fee earners from 1:1 to 4:1. Improved efficiency through streamlined advice processes, improved propositions and a change in culture in large financial advice businesses’ looking to drive  revenue growth are the main reasons behind this change.

Heather Hopkins, NextWealth’s Managing Director: “We are seeing big changes in the way firms are gearing up for the future. Larger firms in particular are focusing on how they can use tech to save time, reduce overheads and service more clients. This has particular ramifications for back office and platform suppliers.

Consolidation in the financial advice market is resulting in the emergence of larger advice firms, poised to invest in infrastructures that maximise efficiency. The report suggests that these firms are actively seeking more and improved client data from their back-office systems and full transaction-level data from platforms to support both internal and external reporting requirements. As these larger firms consolidate, they gain the influence to demand more from their suppliers, building their own links in the system of record to support the system of engagement.

An implication for Back-office systems suggests that they must adapt to a heightened demand for greater customization in data feeds, meeting specific MI reporting requirements for shareholders, regulators, and clients while Platforms face a growing need for enhanced APIs to populate data lakes, feeding into various systems such as client reporting engines, portals, accounting systems, and dashboards. More of such insights are discussed in depth in the report including market share and adviser ratings for leading back office system providers as well as the emergence of AI and its importance to automating tasks.

Larger firms are concentrating on using technology to save time, cut costs, and serve more clients, which is about to disrupt the financial advice scene dramatically. For back-office providers, platforms, and financial advice firms of all sizes, the research is a must-read since it offers insights into the changing dynamics of the sector and the critical role that technology will play in determining its future. Success in the changing financial advisory market will depend on organisations’ ability to adapt and work with tech partners as they negotiate this seismic upheaval.

You can find out more about the report here. We welcome your thoughts on the future of advice, financial advice professionals interested in contributing to future research studies please get in touch on


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