Some 91% of advisers say poor service from platforms impacts their day-to-day working research by Parmenion in conjunction with The Lang Cat has revealed.
The report titled ‘The Impact of Poor Platform Service’ found that 88% of advisers needed to apologise to at least one of their clients on behalf of a platform.
While 89% stated they would invest some or all of the time lost to poor service into taking on new clients.
One surveyed adviser, said: “I am sick of useless service and systems that are clearly not fit for purpose.
“Recent upgrades on some platforms have done little to improve matters if anything they have possibly made things worse- if that’s possible.”
Reasons for getting in contact with a platform included post-sale servicing (42%), chasing up work in existing queues (28%) and technology/process issues (10%).
To read more on this topic, visit: Advised platform outflows reach record high
As part of phase 2 of The Lang Cat’s work they will be partnering with Parmenion and working with the advice profession and the platform sector to assess the scale of the problem when it comes to poor service and make it more clearer and fairer.
Parmenion chief executive Martin Jennings said: “We know that trust in financial services is too low. But to be trusted, you must act in a trustworthy manner. And when part of the chain is broken, trust is eroded.
“This research lays bare the challenges advisers have in delivering their services to their clients, and reveals the extent of the unseen cost of poor service across our sector. And, of course, the only person that is paying for that, is the client
“Critically, one in three advisers confirmed they had stopped using a platform provider because of poor service, showing that advisers are not afraid to vote with their feet and take business away from the platforms which don’t deliver.
“Parmenion is urging fellow platform providers to be more transparent about their service experience to support adviser and consumer expectations, and in turn, drive up standard.”
The Lang Cat’s insight director Steve Nelson, added: “Gone are the days when provider service used to just mean who could answer the telephone the quickest. Our research proves that service means different thing to different firms and different roles in the profession.
“People, processes, and technology all combine to give a unique view on what an individual needs and expects from the services they use. Ultimately, advice firms use platforms to help make them as efficient as possible.
“That’s the theory anyway. It’s no surprise to see service becoming an increasingly important selection factor in the research and due diligence process when you look at some of the impacts that a poor service experience, whatever that may mean to the individual, can have on a firm.”
