What's Happening?
The platform industry has experienced significant changes in 2025, marked by consolidations, new launches, and record asset growth. A survey by Platforum revealed that nearly two-thirds of advisers now use two or fewer platforms, up from 55% in 2018. This trend is accompanied by a surge in mergers and acquisitions, with major firms like Octopus Money acquiring Virgin Money's digital investment platform. New platforms have also emerged, such as SS&C Hubwise's digital-first wealth management platform for Wesleyan Assurance Society. Adviser platform assets reached a record £756 billion in the third quarter of 2025, driven by buoyant technology stocks and declining interest rates.
Why It's Important?
The consolidation and growth in the platform industry reflect a broader
shift towards efficiency and specialization in financial services. As advisers concentrate client assets on fewer platforms, the industry is likely to see increased competition among platform providers to offer superior services and technology. The record growth in platform assets indicates strong investor confidence and a favorable economic environment, particularly in technology sectors. This trend benefits platform providers, financial advisers, and investors, as it enhances the accessibility and management of investment products. However, it also poses challenges related to regulatory compliance and the need for continuous innovation to meet evolving client demands.
What's Next?
The platform industry is expected to continue evolving with further consolidations and technological advancements. Companies will likely focus on expanding their product offerings and improving user experience to attract and retain clients. The entry into private markets through long-term asset funds (LTAFs) is a notable development, providing new investment opportunities. As the industry adapts to regulatory changes and market dynamics, stakeholders will need to address potential legal risks, as highlighted by M&G's lawsuit against Royal London. The upcoming months will reveal how clients respond to recent budget changes and whether the growth trajectory will sustain into 2026.
