MPS has become an increasingly competitive space, swelling to over £180bn in size with more than 200 providers vying for market share and the pressure on providers to innovate is coming from different directions.
As well as growing regulatory demands – such as the upcoming FCA review of MPS – Mark Hopcroft, Aberdeen Adviser's head of investment solutions, sees providers under sustained pressure to drive efficiencies throughout their core functions.
"If we can manage portfolios in a more efficient and robust way, then that will bring cost efficiencies we can pass back down the line to advisers, and their clients," he explains.
"So does your DFM seek to benefit from the advantages that technology can bring to help deliver value to the end client?"
Meanwhile, Consumer Duty is putting these firms under greater pressure to demonstrate they are supporting clients and meeting their needs. Technology can help provide a solution here and more MPS providers are exploring how they can give advisers the information they need, when they need it.
Hopcroft says these solutions should ideally be able to help when reporting directly to the regulator and conveying how their rules are being complied with: "Are the providers they're using helping make that easy for them? Is the information they require readily available in a consistent format?"
Learn more about Aberdeen's innovation, the benefits of its scale, and commitment to meeting evolving regulatory obligations around Consumer Duty in our Spotlight guide.
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