Fidelity sees shift towards post-retirement market
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The platform market is set to become increasingly polarised and more geared towards the post-retirement market, according to Fidelity International.
Head of UK fund partners Ed Dymott predicts that while platforms up to now have focused on pushing the level of assets under management, this may be set to change. He says: “Over the next five years, we see a shift towards the post-retirement market, perhaps offering more income drawdown rather than accumulation of assets.”
Dymott also forecasts that the UK platform market could go the same way as the more established US market, with a greater gap emerging between the big players and more specialised platforms. He says: “People und-erestimate the operational complexity in growing a platform. The
challenge is in going from being a niche platform to one of scale and over the next 10 years that divide is only going to grow.
“The point is platforms are a service business. Being able to manage call centres, having good front-end systems, there are some major challenges there.”
But Finance & Technology Research Centre director Ian McKenna says that while there will continue to be niche and mainstream offerings, the platform market is moving towards being powered by one or two core technology propositions.
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