“And you just create multiple layers within that. Whereas the likes of Seccl and Hubwise, they own their own technology, so they can offer that a bit more easily.”
Meanwhile, other platforms are looking at how they can double down on the service offering and consultative support they can provide to advice firms, says Northrop. “So almost recognising they can’t offer the white-label platform offering but actually saying, ‘We think for a lot of advice firms, particularly the smaller-to-regional ones, they’re never going to be able to operate their own advice platform, so let’s provide them the best possible experience, let’s help them in other ways’.”
Jackie Leiper, chief of Embark Group, an investment platform provider, says: “White labelling can be an attractive solution for larger adviser firms as it gives a more integrated technology, customer and product solution without taking on all of the expense and risk if they were to develop their own platform from the ground up.
“Embark has a number of different white-label partners and models, which have been developed depending on the business model ranging from the provision of the core technology, or adding hosting of our products or a full service which includes customer service support and administration.
“As a result, we see this area as having huge potential for growth and will continue to fully participate in this growing market. The value that white labelling can bring varies with the scale and maturity of the buyer.
“Whilst the very largest of businesses may prefer to own the full platform responsibilities with the regulatory burden, many others will take advantage of the technology provider's position as a regulated entity, and they already have the trading volumes to rapidly take advantage of the cost savings that an ‘off-the-shelf’ solution offers.
“As a result, we expect to see more white label adoption as consolidation continues in the industry.”
Chloe Cheung is a senior features writer at FTAdviser
