The broad church of ‘Platforms’ is now heading into an era of significant change and disruption in Australia(and globally) after a period of maturation following the ‘independents’ successful grab of a seat at the table alongside the large Institution-linked Platforms.
Two new trends: ‘cost’ and ‘agility’ are differentiators that are now emerging tochallenge the current order:
- Cost – larger Operators using economies of scale are slashing fees (and continue to do so)
- Agility – smaller specialist ‘Platforms’ are using Fintech to push smarter solutions.
They are using new technology to achieve this break-out in both cases. ‘Traditional’ and mid-ranking Platform Operators are going to get squeezed because they will be unable to quickly address both the agility and the cost problems without a radical overhaul ofthe current ‘Platform’ business model.
Implementing a new model will suffer the usual fierce resistance to change from at least two powerful directions: internal IT and internal administration lobbies.