Pimfa launches tech platform with Morningstar for advisers

Pimfa launches tech platform with Morningstar for advisers
Liz Field of Pimfa

Pimfa has joined forces with Morningstar to launch a platform that encourages wealth management and advice companies to take advantage of tech developments. 

The platform, called Pimfa WealthTech, has been developed as a response to drivers of digital transformation, such as the pandemic, and the impact on advice models and shifting demographics.

Pimfa said digital is reshaping business and operating models and accelerating the need for wealth management and advice firms to focus on the use of technology-based solutions and new technology to enhance the products and services they offer.

The body explained that many wealth management and advice firms believe that their “future success and ability to operate at pace and scale”, will depend on better use of customer data and technology such as artificial intelligence. 

WealthTech will draw on the expertise and resources of digital service providers and is working with Morningstar as its strategic partner to support this industry-wide digital transformation.

The platform will focus on key issues affecting the sector, from how tech is being applied across the industry, to customer acquisition and onboarding.

It will also look at product structuring and development, investment management and execution, portfolio management, account administration and after-sales client reporting and servicing.

Pimfa chief executive Liz Field said: “The way in which wealth management and advice firms engage with their customers, the amount of data required to serve those customers, and the challenges of operating in an increasingly digitised environment mean that all firms recognise the need to enhance their proposition through better technology. 

“Digital transformation and technology was reconfirmed as a key strategic priority with our board and advisory council at its February meeting.”

Field said enhancing existing technology is a challenge as well as identifying the right solutions to enhance existing capabilities.

She explained that some firms find starting the process daunting, being unsure of what technology they need or which providers to speak to. 

“Pimfa WealthTech will help solve many of these problems and ... the platform will allow WealthTechs and wealth management and advice firms to come together to collaborate and work effectively.

"[This will] help enhance the products and services our industry has to offer our clients, and ensure our place as a world-leading wealth management sector.”

The initiative will also address the role of technology in supporting industry trends such as the growth in environmental, social and governance investments and the emergence of Open Wealth.

Pimfa said the platform sets out to fulfil one of the key objectives in its manifesto to “enable digital business transformation through the development and adoption of market-leading technology”.

Morningstar’s head of adviser solutions, EMEA, Anastasia Georgiou, said: “As a fintech company, Morningstar is excited to support the Pimfa WealthTech platform. Digital transformation and innovation put the customer centre stage. 

“In a world where we have a proliferation of data, changing consumer preferences, the growth of sustainable investing, and increased regulation, wealth firms need support – the Pimfa WealthTech Platform is a hugely important initiative doing just that.”