Innovation in AI and cyber security top adviser focus for platforms

In its 21st Platform Competitive Analysis and Benchmarking Report, Investment Trends said there has been “sustained innovation” from the platform market, with the leading players “delivering on the evolving needs of advisers and investors”.

HUB24 has maintained its top spot in terms of overall functionality for the third straight year while also achieving the most significant score increase, moving from a rating of 92.6 per cent to 94 per cent for 2024.

Most of the top five remained unchained compared with 2023, as Netwealth (90.3 per cent), Praemium (89.2 per cent), and BT Panorama (85.3 per cent) retained spots two to four, while North (83 per cent) leapfrogged Mason Stevens into fifth place.

Platforms’ commitment to innovation is evident in the breadth of enhancements made throughout 2024,” said Paul McGivern, director at Investment Trends.

“As advisers increasingly segment their client bases, platforms are taking distinct strategic approaches to tailor their offerings to these segments.”

According to the report, platforms have shown a growing focus on artificial intelligence integration and cyber security, with many introducing AI tools to enhance efficiency around areas like file note transcription, portfolio commentary and education, but also security.

Fraud prevention was also listed as an important priority, with advancements in client authentication, biometric security and fraud prevention education initiatives.

“Advisers are rapidly adopting AI and platforms are responding with tools for education, portfolio insights and transcription,” McGivern said.

“And the platforms that haven’t already integrated these features are fast-tracking deployment for 2025.”

The report also found that platforms are expanding their offerings to help advisers meet the growing demand for retirement solutions. Investment Trends highlighted North as a platform that has taken the lead on lifetime income solutions, “driving a sector-wide shift toward more tailored retirement products and services”.

“Platforms are stepping up their efforts to address the growing retiree population, and the implications for RIC compliance and expected drawdowns,” McGivern said.

“North has asserted strong leadership in this space with its innovative lifetime income solution, while HUB24 is also expanding capabilities. Broader industry adoption could significantly reshape the platform landscape.”

According to the report, platforms have also responded to growing demand from both advisers and clients for access to private markets, with improvement across platforms’ investment menu, administration and reporting.

The data also indicated a growing demand for streamlined tech stacks, with some platforms leveraging banking integrations for a competitive edge, while others build their own ecosystems through acquisitions.

“As advisers seek efficiency and differentiation, platforms that can deliver seamless functionality, security and innovative investment solutions will stand out in an increasingly competitive market,” McGivern said.