Up-and-coming SMSF administration software providers pose a threat to the major financial institutions' control of the platform market, according to one financial services executive.
Speaking on a panel at the recent Wraps, Platforms & Masterfunds conference, netwealth chief executive Matt Heine said the banks and major platform providers are – and should be – worried about the rise of SMSF admin entrepreneurs.
“Every day [the platform manufacturing industry] faces new threats – Google could probably do what we do if it was a focus for them,” Mr Heine said.
“The SMSF administration software providers are more of a threat than the larger platform providers will admit – they are effectively cutting out the platform – as it all becomes automated and people try to transact through them. They will become more of a threat in the SMSF space.”
Mr Heine added that the bigger players should be particularly concerned if the SMSF admin software providers move into other financial services realms such as portfolio construction and trust portfolios.
The comments follow a session in which Kelly Power, head of platforms and insurance at BT Financial Group, said that unless a service provider can offer the full gamut of platform services right through to execution, then they are “more complementary” to the banks’ service offering than a threat.
“There is an outstanding question about what the impact would be if one of the software providers moved into execution and the end-to-end, but at the moment they’re not really competition,” Ms Power said.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 22 May 2017ATO sheds light on LRBA reporting requirementsBy Miranda Brownlee
- 22 May 2017Software provider releases super reform-focused servicesBy Jotham Lian
- 22 May 2017ATO poised to ramp up focus on key compliance areaBy Katarina Taurian
- 22 May 2017Caution advised on ATO’s new super balance toolBy Katarina Taurian
- 19 May 2017SMSF real-time reporting slated for FY2018-19By Miranda Brownlee and Katarina Taurian
- 19 May 2017Lawyer points to benefits of AFCA for SMSFsBy Miranda Brownlee
- view all
- Software provider releases super reform-focused services
BGL has announced the release of services, designed to deal with the 2016-17 superannuation reforms, that will help clients tackle the new C...read more
- ATO poised to ramp up focus on key compliance area
With 8 per cent of funds failing to meet their lodgement obligations for the last two years at least, the ATO is set to up its compliance fo...read more
- view all