Platforms' 'effective revenue' shrinking alongside costs

'Average operating cost 42bps'

Tom Ellis
clock • 1 min read

The "effective revenue" on platform assets is continuing to shrink, according to Altus Consulting, but the cost of servicing both customers and advisers is falling at an almost identical rate.

The firm's latest whitepaper Giving your platform wings found the average platform's revenue per adviser served has fallen 17% to £13,000, but the cost of servicing the average adviser has fallen 16% to £12,500. Similarly, it found the average D2C and adviser platform cost of servicing a customer had fallen by 37% to £223, while the average revenue per customer fell by 36% to £250. The consultancy also highlighted the huge disparity in efficiencies across the platform sector. Per £10,000 assets under administration, it said, the highest operating costs were £297, while the lowest was ...

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