A third (36%) of advisers expect to direct more business to platforms over the next 12 months, with overall assets on platforms expected to surpass £1.2trn by 2021 according to Aegon's new Adviser Attitudes Report: Technology in the Financial Advice Market.

This rises to nearly half (47%) amongst adviser firms with six employees or more. Only 2% of advisers said that they expect to place less business on platforms.

More than four in five (86%) advisers find that platform technology makes providing advice more cost effective.

The platform sector is seeing significant growth with total assets under administration increasing by 6% in the first quarter of 2017 to £520bn. By 2021 it is expected to surpass £1.2 trillion.

Two thirds of advisers (66%) say that the greater convenience and time efficiency that platforms offer clients is the main reason that they are beneficial. A similar number (63%) point to the value to clients of the wide range of investments available.

Other key benefits for clients include lower charges (39%), making financial planning more straightforward (36%), and the speed that client requests are able to be processed (34%).

Advisers also revealed that the top reasons for using a platform over a traditional life company are the access they give to better investment choice (fund options and access to discretionary fund managers) (63%) and because it helps manage a range of products and investments in one easy-to-use portal (58%).

Aegon pensions director Steven Cameron said: “The new wave of technology in the financial services sector is having a transformative effect, offering opportunities for innovative products and services. Platforms in particular are changing the industry, and it’s clear that advisers are positive about the possibilities. Platforms streamline their workloads, but more importantly for them, they enable advisers to better service their clients.

“The significant growth of defined contribution schemes and the popularity of the pension freedoms, with many more people remaining invested during retirement, mean the importance of advisers supporting investment decisions continues to grow. This has helped shape the evolving platform market, and platform providers have a central role to play in working with the intermediary community to ensure that platforms continue to offer the best possible tools to support advisers and their clients.”

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