Wrap platforms have now reached a ‘proliferation peak', and the industry will begin to consolidate, according to Nick Blake, wrap sales manager at Standard Life.
Blake says many wrap providers were ill prepared for the long development cycle and continual support costs that go with creating a successful wrap platform, and believes more providers will begin to leave the market. “We’ve seen a lot of platforms coming to market in recent years, but I think we’re now reaching a proliferation peak. The number of providers offering wrap platforms will dwindle to a few big players. Perhaps between four and six will succeed,” he says. According to Blake, many players in the market believe they can put a wrap together in a few months, but he says it can tak...
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