Advisers increasingly favour branded and customised platform models

The number of financial advisers primarily using outsourced third-party platforms without firm branding has declined over the past four years, according to NextWealth Platforms Unpacked.

The latest NextWealth platform research, which surveyed 340 financial advice professionals and conducted 19 in-depth interviews with industry leaders, found that in 2021, 56% of advisers relied on such platforms, but this figure has now fallen to 47% in 2024.

This shift reflects a growing preference among advice firms for customised solutions that allow for greater control over client experience without taking on full regulatory responsibility.

Mid-sized advice firms—those with between six and 50 advisers—are driving this trend, according to NextWealth, and are increasingly adopting branded or semi-customised platforms instead of standard outsourced options.

Nearly half of firms with more than £250m in assets under administration now operate fully customised platforms, managing both regulatory permissions and development in-house. In contrast, smaller firms continue to rely on outsourced providers.

Despite these trends, NextWealth said there remains no “one-size-fits-all” approach to platform selection.

NextWealth consulting director Emma Napier said: “Platform choice was never a simple, one-time decision, but it was once a more straightforward comparison between third-party platform providers. Now, advisers must navigate not only different providers but also varying platform models, adding a new layer of complexity to the selection process. Advice firms now have multiple options, from running a panel of preferred platforms, choosing a DFM that operates a platform, right through to operating their own platform.”

Napier continued: “Any platform transition requires more than a simple ‘lift and shift’ of client assets: it demands a reassessment of processes, integrations, and efficiencies. No single model is a silver bullet either. Even the most well-structured platform strategy will likely require some creative problem-solving to bridge gaps in functionality, data access, and compliance. Ultimately, the right platform decision is one that enables firms to focus on what matters most: delivering high-quality financial advice while maintaining operational resilience and regulatory compliance.”