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Lloyds-Schroders venture hit by platform problems

Lloyds-Schroders venture hit by platform problems

The £13bn wealth management joint venture between Lloyds Banking Group and Schroders has run into IT problems, resulting in staff complaints.

Schroders Personal Wealth was made available to a small number of customers earlier this year and was a move by the two companies to increase growth at a time of limited opportunity.

The Financial Times reported on Saturday (August 24) that the human resources team at Schroders Personal Wealth had to apologise to staff after a survey revealed concerns about its platform.

A spokesperson for Schroders Personal Wealth, said: "Schroders Personal Wealth, a new financial planning business for UK investors and savers, is making good progress and is on track for its full launch to the wider UK market later this year.

"It is working closely with its advisers as they transition to the new bespoke Benchmark platform.

"The new wealth platform will bring a number of benefits to clients including the ability to see all their investments in one place, online 24/7."

The spokesperson added that the platform was on track for its full launch in the fourth quarter of 2019.

A new digital client service portal, aligned with the full launch later this year, is also in the pipeline and Schroders said this will “further improve the client experience”.

The spokesperson said that to get this right, Schroders was encouraging feedback and open dialogue with advisers.

Earlier this year, Lloyds moved £13bn of assets from its existing client base to the Schroders Personal Wealth system.

The Retail Distribution Review of 2012 drove many big banks away from financial advice and wealth management, but Lloyds has been looking to return to fuel growth of its market share.

Schroders, meanwhile, is using the joint venture to increase its profitable wealth management customer base as a way to offset outflows in its asset management business.