Advisers value ‘less tangible’ traits of platform providers

According to the BT Adviser Sentiment Index, advisers prioritise experience-based attributes over cost when selecting a platform provider.

Using survey data from more than 200 advisers, BT found that safety and security were the most important factors to advisers when choosing a platform provider (94.5 per cent overall).

This was very closely followed by trustworthiness and honesty (94 per cent overall), however, this ranked as the top priority for advisers 50 and over, with 97 per cent of the group indicating its importance to them, compared with 91 per cent for those not.

Another key component was valuable customer service (89 per cent), ranking third among adviser priorities, highlighting the need for providers to find points of value to advisers beyond cost and product selection.

This was followed by value for money (87 per cent), which was valued considerably higher for advisers 50 and over (91 per cent) than for those under 50 (83 per cent), and product and service offerings (83.5 per cent).

Notably, advisers 50 and over placed greater value on almost all 10 of the represented product provider attributes in the report than younger advisers, with the exception of safety and security (96 per cent compared to 93 per cent).

According to the report, this shows that “older advisers expect more from their providers”, presenting a challenge and an opportunity for providers.

BT’s head of service and operations, Sharyn Baker, said the findings were likely linked to the lack of stability and certainty in the market.

“What’s remarkable about this year’s findings is that the attributes that advisers value the most are the less tangible elements of the user experience,” Baker said.

“Safety, trustworthiness, and customer service rank above other attributes related to products and price. At a time when there are heightened geo-political tensions and market uncertainty, these experiential elements of service are leading advisers’ decision-making.”

Baker highlighted the importance of understanding the complex needs of advisers and their clients when developing a platform.

“Our service philosophy is based on people taking the lead, with technology enabling improved performance to achieve customer satisfaction. Financial advice and investing are human activities, and clients’ financial decisions are often driven by emotion and logic,” she said.

“The right advice depends on each client’s circumstances, so human judgement is essential. This goes to the core of the value of advice, the trust that clients place on advisers.”