Standard Life’s two platforms businesses could be open to consolidation in the future based on the feedback the company receives from advisers.
The original Wrap platform and the recently acquired Elevate platform will continue to operate as separate products, but this could be adjusted if Standard Life’s adviser clients call for change.
Paul Matthews, Standard Life’s UK and Europe chief executive, said that he likes to think of the company as a provider of software that allows advisers to run their businesses, and that the products offered by Standard Life will continue to evolve to meet adviser demands.
“The main focus for us is to provide the IFAs with what they want – that’s our driver. So if advisers are looking for more functionality or different enablement we’ll have to see how we can best provide that.
Mr Matthews noted that the Wrap platform has “changed dramatically” since it launched in 2006, and that further changes will go “in the way advisers want it to go”.
“As advisers give us more feedback about how they want things done both for Elevate and Wrap we would adapt the platform to that. We see ourselves as the supplier of the software to the adviser market.
“In many ways the development of which way it will go is, the advisers are probably as good as anyone to ask because as they evolve their businesses we’ll evolve the platforms for them.”
The two platforms already use provider FNZ for back end procedures, stock trading and administration.
“Both the businesses have been using that same supplier so that’s clearly coming together. There are some synergies we can work through in the backend bits to improve the productivity of it,” Mr Matthews said.
Standard Life’s retail business now works with over 3,000 adviser businesses with total platform assets under administration (AUA) of £44.2bn, with net inflows of £4.8bn over the course of 2016.
Elevate added £11.1bn in AUA, which combined with Standard Life’s original Wrap platform bring the total assets on platforms to £40bn.
Mr Matthews added that a number of advisers use multiple platforms for their clients, as some prefer the simplicity of the Elevate platform, while some prefer the more detailed offering in Wrap.
“The option is there for them already. Around 300 advisers today out of the 3,000 use both platforms. What they do is put certain customer groups on one platform and certain groups on the other. I think that’s a really good functionality for them to have.”
Standard Life will continue to keep on the lookout for further acquisitions in the future. Though Mr Matthews could not divulge details of any in the works, he said that the firm would consider “any business that compliments what we’re trying to do”.
“Fundamentally we’re about providing administration for advisers [and] for employers. We provide a small amount of advice, so firms that provide some advice. And then we also provide investment management, so firms that provide investment management.
“I think historically what we have done is that we will always look at any asset management businesses out there, we’ll look at any administration businesses out there, and any advice businesses. We’ll always search the market if there’s some business out there that might add value to us.”
