Platforms' process digitisation soars in 2023

The overall number of processes digitised across platforms surveyed by NextWealth rose from 3 per cent last year to 81 per cent this year. 

The number of forms that need to be returned in the post has fallen from 65 to 45 in the past year, down 63 per cent since 2020.

Processes around portfolio management, regular withdrawals and income drawdowns are the most digitised, with those relating to orphan customers, death and trusts the least digitised. 

Emma Napier, consulting director at NextWealth, said the largest seven platforms by assets are among the top 10 for digitised processes. 

“This challenges the view that larger firms are slow to change and will redeploy project teams accordingly," she said.

The data showed that 72 per cent of advisers said they want fully digital platforms, driven by a desire for improved efficiency in transactions and the added ease of doing business. 

The IFAs surveyed said adoption of digital processes is becoming an increasingly important factor in platform selection. 

NextWealth surveyed 20 platform providers on 74 document submission and six adviser notification processes, with views collected from 327 financial advice professionals.

The number of advice firms using e-signatures in 2023 rose 5 per cent, continuing an upward trend seen in the past three years.

Source: NextWealth

E-signatures are more widely used in larger advice businesses, though this year saw an increase in the number of businesses with a single adviser using e-signatures.

Of all the platforms surveyed, NextWealth said Novia had made the most progress this year, with 46 per cent of processes now requiring no signature.

AJ Bell, Fidelity Adviser Solutions, Quilter, Transact and True Potential were called ‘digital champions’ by NextWealth, with more than half of all processes requiring either no signature or an e-signature, and less than 10 per cent requiring a wet signature.

sally.hickey@ft.com