White-labelling and the implications for providers

By Heather Hopkins | 27 May 2021 | 2 minute read

The rise of white labelling is indicative of  broader trends that will have implications across the supply chain.

Earlier this week we published a report that includes a stunning finding: half of financial advisers in firms with £250m + in AUA plan to launch a white label platform in the next three years. Download the report free here.

This stat on its own is remarkable. But it’s also indicative of two broader trends in financial advice businesses that are already having an impact on advice tech providers, asset managers and of course financial advice businesses.

Trend: Operations and tech trump fund selection
Here’s one of my favourite quotes from our report on white label platforms:

“Businesses usually started in terms of focusing on funds and fund selection. And as we’ve gone on, operational efficiency and technology is probably now more important than how I put your investment proposition together, it’s secondary to driving efficiencies in the business.”

Providers selling their wares to or through financial advisers need to bear this in mind. To avoid becoming a commodity with price the only differentiator, providers need to think about how they can support financial advice firms in driving operational efficiency.

Trend: Financial advisers taking control
Financial advisers are exerting more control over the client proposition and their business operations. The rise of white label platforms is one example. White label model portfolios offered by Square Mile, LGT Vestra, Brooks Macdonald and others have also proved popular.

Financial advisers have long had to apologise for the shortcomings of our industry. They are increasingly building tech and adopting tech solutions that allow them to have more control over data, the client experience and the entire client facing proposition. It’s lazy thinking to chalk this up to a desire to capture margin. It’s much more than that.

How is your firm adapting and innovating to thrive amid this disruption? Get in touch – we love to exchange ideas.

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