UK investment platforms are entering a new phase of evolution, marked by ambitious growth plans and rising technology investment, according to a new industry benchmarking report published today.
The inaugural Platform Horizons Report, launched by The Platforms Association in partnership with consultancy Alpha FMC, offers a comprehensive insight into the operational and strategic direction of the UK platforms sector.
The study draws on data from firms representing 71% of UK attributed Assets Under Administration (AUA), amounting to £928bn across 10.1 million UK customer accounts and 14.2 million globally.
Investing in innovation
The report reveals a decisive shift towards digital transformation, with tech investment including automation and AI now forecast to grow at double the rate of operational spend.
Among leading firms, an average of 61% of IT budgets are devoted to innovation and change initiatives, compared to just 32% on business costs such as personnel.
By contrast, firms that lag behind are more encumbered by legacy systems and routine operational expenses that hinder their ability to innovate.
“Our inaugural Platform Horizons Report demonstrates the growing maturity and forward momentum of the UK platforms industry,” said Keith Phillips, CEO of The Platforms Association.
“What’s particularly encouraging is seeing how our industry is proactively embracing transformation rather than simply reacting to challenges.”
Growth remains a core priority for the sector, but the report warns that platforms with onboarding times of six days or more face potential risks — including higher costs and erosion of customer trust — if they scale without resolving core inefficiencies.
While operational costs rose by 3% from 2023 to 2024, this uptick is seen as a strategic investment in scalability rather than a structural weakness.
Growth is expected to slow this year, intensifying the need for more efficient infrastructure, according to the report.
Automation and AI lead the agenda
The top three strategic priorities across the sector are automation, data & analytics, and cybersecurity.
AI, while widely discussed, remains underutilised — yet nearly 90% of firms cite it as their number one priority for the next one to three years, highlighting its potential to reshape everything from client onboarding to portfolio management.
“[Seeing] that 79% of firms are prioritising automation and innovation, while simultaneously dedicating substantial resources to regulatory excellence through Consumer Duty implementation, shows an industry that is both operationally sophisticated and genuinely committed to delivering better outcomes for savers and investors,” Phillips said.
“The emergence of leading firms who have achieved the ‘zone of optimisation’ – allocating 61% of their IT budgets to strategic change rather than maintenance – provides a clear roadmap for the entire sector’s evolution.”
Scott Lee, senior partner & head of wealth management UK & Ireland, Alpha FMC, added: “The Horizons Report sets a new benchmark for understanding the sector’s strategic and operational priorities. It’s clear that automation, AI and regulatory change are reshaping platforms at pace.
“The level of transparency and collaboration in this benchmarking report will be critical in helping firms navigate complexity and deliver better outcomes for clients. As the industry’s transformation partner, Alpha FMC is committed to supporting platforms as they accelerate towards greater efficiency, resilience and innovation.”
Consumer Duty driving change
Regulatory pressure is also reshaping operations. The FCA’s Consumer Duty has emerged as the top regulatory concern, marking a departure from tick-box compliance toward a more holistic overhaul of how platforms operate.
As a result, most UK platforms now allocate between 16–30% of their change activity to regulation-related work, underlining the profound impact of the evolving regulatory landscape.
The Platforms Association, launched in October 2024, now represents over £1trn in AUA. Its members include UK and European regulated firms focused on custody, settlement and asset safekeeping for retail investors, as well as sub-custodians that support intermediary-led platforms.
According to Phillips, the UK platforms sector isn’t just keeping pace with the broader financial services industry — it’s helping to define the standard.
“This benchmarking study, the first of its kind for our industry, reinforces that UK investment platforms are not just keeping pace with global financial services innovation, but are actively setting the standard for how technology, operational excellence and regulatory leadership can work together to build a more accessible and efficient investment ecosystem for millions of UK savers.”