Direct-to-consumer platforms are being held back by worries over unclear Financial Conduct Authority guidance with regards retail sales, a white paper from tech consultancy Altus has claimed.
The paper says that although nine out of 10 firms predict significant growth in the D2C platform market in the near to medium future, unclear definitions of what is and is not advice have been holding them back.
However, the consultancy says these fears are misplaced and rather than focus on the exact definition of advice, platforms should focus on “consumer experience and ease of use”, which the paper highlights is an area where the financial services sector lags behind other industries.
Altus consultancy director Kevin Okell said: “The real winners in this world will be providers who look outside of the financial services sector for inspiration.
“The retail, grocery and telecommunications industries are already managing to harness the art of consumer-centric business modelling very nicely, which is why our industry could learn a thing or two from the way these sectors are operating.”
Platform consultant Mark Polson, founder of the Lang Cat, said: “We’ve already seen some areas in which the direct platforms space is starting to stretch away from its advised cousin.
“In just a few weeks since Hargreaves Lansdown announced its charging structure we’ve seen considerable pricing innovation, and a real focus on what it is that platforms can do for investors over and above pure custody, dealing and administration.
“Now it’s time for the sector to make its kit a pleasure to use and to interact with.”
