There are some dinosaurs in the platform industry that will go extinct if they don’t evolve, Progeny’s former CTO has warned.
Tim Thompson-Rye gave his damning verdict during a panel discussion at the Empowering Advisers Through Technology (EATT) conference yesterday (30 January).
Thompson-Rye said that platforms have “had it easy” over the years, and as a result have had “no incentive to improve or innovate”.
Addressing delegates, he said: “We all know there are some dinosaurs in the platform community, and what happens to dinosaurs? They go extinct.
“That is going to happen. We’re seeing some of the signs of that now.
“Frankly, platforms have had it really easy.
“I think because advisers have defaulted to them, collectively we have treated the platform as the hub of our clients’ financial world rather than using our own CRM.
“So platforms have had almost no incentive to innovate, other than keeping up with the slow progress that all the other platforms are making now.”
He said there has been evidence of some change, which is “fantastic and long overdue”.
“But the reality is, there is very, very minimal differentiation between platforms from a client’s perspective.
“They are just a hygiene factor for so many clients.
“Clients don’t care about the platform, they care about cost, they care about service and outcomes.
“Platforms, I’m afraid, are just commoditised infrastructure. If they if the innovate, we have a solution to the long term.
“If they don’t, like I say, they will go extinct. They’ll become invisible commoditised infrastructure at best, or completely dead.
“I think that the future of platforms belongs to those that empower advisers, not the ones that try and control the advances.”
Benchmark Capital CEO Ed Dymott, whose firm has embedded a platform into its tech stack, added: “If you’re a standalone platform provider, it’s a grim future really.”
FTRC founder Ian McKenna, chairing the session, said: “Platforms have become part of the supply chain and are going to get commoditised more and more and more.”
Comparing platforms to a CRM system shows how little he understands about what they are and what they do. Fundamentally, they are a custodian. Try doing that with your CRM!
Yes, they need to improve and innovate, but the model of using a centralised custodian, connected via technology is not going away. At least until DeFi truly takes off, and we might all be dead by then.
Hey Adam, thanks for the comment – happy to clarify. I wasn’t suggesting for a second that the CRM would take over doing what the platform does; clearly the need for a custodian (as you put it) remains. What I’m saying is that the platform should be one ‘spoke’ of the adviser’s ecosystem, while the CRM / back-office system should be the ‘hub’. That allows the adviser to own their data and integrate with as many platforms and other tech providers as they like, thereby delivering the best service to the client, who only cares about the advice and its cost. Consequently, platforms become invisible infrastructure (from a client POV). Those that fail to innovate to enable this vision or otherwise hold the adviser back will become extinct. Drop me a message on LinkedIn if you like, I’d be interested to hear more of your views.
The comments from Tim Thompson-Rye highlight a critical issue in the platform industry. He rightly points out that platforms have often lagged in innovation, benefiting from advisor default rather than genuine improvement. In today’s digital age, where efficiency and client-centricity are paramount, the sluggishness of many platforms in basic functionalities like portfolio uploading is unacceptable.
For financial advisers, who prioritise cost, service, and outcomes, these inefficiencies not only waste time but also risk client satisfaction. Platforms must evolve beyond being mere infrastructure; they need to empower advisers with seamless, efficient tools that enhance client interactions and outcomes. Otherwise, as Thompson-Rye warns, these platforms risk becoming irrelevant or extinct in a rapidly advancing market.
Thanks Mark, totally agree!
I think the author has missed a fundamental point. What is a platform? It is a utility – plain & simple. It just enables the adviser or the individual to chose from the universe of investments, have them all in one place, have the requisite options (ISAs, pensions etc). It should also offer the widest options. UTs, SICAVs, ITs and direct shares etc as long as the items are on a recognised exchange and are legal. On boarding, switching and valuations should be simple and straightforward on a good website Everything else is just extraneous nonsense, pandering to those who don’t know what they are doing. (Model portfolios etc). All this harping on modernity is just showing that the author has missed the point.