subscribe to our newsletter
SMSF admin providers threaten insto market share

SMSF admin providers threaten insto market share

Aleks Vickovich
05 September 2013

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.

SMSF admin providers threaten insto market share
smsfadviser logo
join the discussion

Do you support the government’s proposal to change the annual SMSF audit requirement to three years for members with clean audit history?

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

Get the latest news and opinions delivered to your inbox each morning

In this month's issue:

  • Time wrap
  • The tech bull run
  • From hobby to passion
  • Golden Years
  • An untimely reminder
  • Why change is so difficult
  • Key Strategies for equalising super