The adoption of microservices will help improve efficiency in the platform space as well as scale up adviser digital services, Novia Financial has insisted.
The platform provider is one of the early adopters of this tech capability and is working closely with third party microservice provider FinoComp to resolve some of the constraints it was experiencing with its platform.
Microservices are a software architecture that divides the service platforms provide into smaller units.
Novia’s chief commercial officer Barry Neilson told reporters at a media briefing in London yesterday (22 November) that microservices as a software architecture would be transformative for the platform industry.
He said the tech capability can be used to divide the service platforms provide to advisers into smaller functioning units instead of the monolithic application that is built as a one-size-fits-all architecture.
Neilson said there has been a lack of innovation in the platform sector in the last 10-15 years adding that “the pace of change is not where it is meant to be”.
“We are all working in a world today where the average smart phone is more sophisticated than what the average adviser has in their business. And I think that’s the gap.”
Novia has already deployed microservices in its non-core platform functionality such as model portfolio management, Capital Gains Tax calculator, MIFID II reporting, and costs and charging.
In April, Neilson told Money Marketing that has partnered with Finocomp, the Australian back-office technology provider owned by Bravura, to ensure it does not take the replatforming route.
Novia is on the smaller side of the platform market with £12bn of assets under management and has no plans to enter the direct-to-consumer market.It focuses for growth remains on IFA firms which support its approximately 67,000 strong client base.
Finocomp’s business development director Tim Williams, who was also at the Novia press briefing, said microservices provide lots of advantages to platforms.
He said many platforms are grappling with managing multiple portfolio services because “some core platform technology prevents you from being able to do that because the way their system was designed”.
Williams noted that the “challenges” can easily be addressed with the use of microservices.
He said microservices have been deployed successfully in other industries and household names such as Uber, Netflix, Google and Amazon among the early pioneers.
Novia Financial has announced it is to cut platform charges for new and existing clients from 1 January 2023. This is the first pricing change for the adviser-focused platform business since its launch in 2008. The reduction will see the headline rates paid by a typical Novia client with between £100,000 to £200,000 on the […]
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Advisers’ due diligence on their platform partners could be raised to a higher level as a result of the Consumer Duty, Altus Consulting has found. In a whitepaper published today (16 November), the consultancy said financial advisers are frustrated with the status quo. It also emphasised the importance of thorough due diligence on getting the […]
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