Financial advisers are beginning to use fewer platforms than they were compared to three years ago, a new study has revealed.

Aviva carried out research among advisers that found in 2023, none of those surveyed had reported using more than five platforms, with the majority (70%) revealing they use two or three.

When compared to Aviva’s research from 2020, this compares to 11% of advisers using more than five platforms, and 58% who reported using two or three.

The latest findings, based on s study of 1,003 advisers, also revealed that 65% said their firm has several platforms available and they can choose which one they use, with 64% revealing they tend to use one main platform. These levels were broadly similar to what was found in 2020, when the corresponding figures were 64% and 61%.

Aviva suggested that using fewer platforms is down to the personal choice of advisers, rather than company policy. However, 59% of respondents agreed that the longer-term aim is for firms to reduce the number of platforms they use.

Head of Aviva Adviser Platform, Al Ward, commented: “The move towards using fewer platforms is understandable in a maturing market, as advisers become accustomed to the way their preferred platform works, and the market itself is seeing more consolidation and standardized tech.

“It’s important, however, that advisers keep in mind the individual needs of their clients, some of whom might be better served on one platform over another. In the drive to provide good consumer outcomes, it’s a good idea to have options.”

Factors which impact advisers’ choice of platform have changed since 2020, when the top three were overall tech reliability (88%), followed by choice of funds available (86%) and value for money (85%). These reasons have been replaced as the top three in 2023 by ease of integration (57%), followed by range of retirement solutions (56%) and ability to build bespoke portfolios (55%).

The changing requirements reflect the 57% of advisers who agree that difficulty of systems integration prevents them from doing their job effectively. This is almost twice as high as in 2020, when 30% reported the same issue. Similarly, more than twice the number of advisers would currently say that platform administration prevents them from doing their job properly – 55% now agree, compared with 22% in 2020.

Ward added: “As client needs evolve, advisers’ requirements of their platform change too. Data integration has long been an issue for advisers, and the fact that over half of them believe it stops them effectively doing their job bears this out.

“Advisers also report that administration is more onerous now than in the past, and this has impacted the ease of switching customers away from main platforms. Advisers and platform providers need to work together to ensure that these difficulties do not get in the way of delivering the best outcomes for customers, especially in the light of our obligations under the Consumer Duty.”

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