We loved Tony Boyd’s analysis of “burning platforms” and our role in financial services and wealth management in Australia, in Saturday’s AFR. Head over to read Tony’s thoughts after chatting with CEO David Ferrall and Chairman David Hancock.
Burning platform is commonly used to describe an incumbent business facing relentless pressure from a new entrant with better technology, lower costs and, in most cases, a radically different business model.
In financial services, the prime example of the burning platform phenomenon can be found in the $760 billion wealth management wrap platforms space. Wrap platforms are used by financial planners and investors to consolidate investment administration and tax reporting.
About 80 per cent of the funds under administration on platforms are controlled by AMP, the big four banks, IOOF and Macquarie.