With the UK wealth management sector facing increased competition, cost pressure and rising client expectations, attention is turning toward platform infrastructure. Many advisers and institutions are – quite rightly – now asking not just what their platform does, but how it is built.
Historically the UK has led the way in retail investment innovation but there are clear signs continental Europe is moving faster when it comes to digital architecture, application programming interface (API) enablement and the breadth of services offered at scale. If UK platforms are to stay ahead – or even keep up – there are valuable lessons to learn from their European counterparts.
Across Europe, ‘wealthtech’ providers are increasingly positioning themselves as open, digital marketplaces that connect fund managers, advisers, custodians and technology partners through a single infrastructure layer. In markets such as Germany, Italy and Spain, platform models are being built around seamless integration, enabling access to services such as alternative investments, consolidated portfolio views and regulatory reporting through modular APIs.
For its part, the UK platform market has tended to focus more on user interface and adviser tools – often supported by legacy infrastructure. According to the Platform Horizons Report 2025 from The Platform Association and Alpha Consulting, nearly half of UK platform firms are still dealing with legacy systems, which remains a key constraint on scalability and speed of innovation. This outdated architecture limits firms’ ability to rapidly adapt or integrate new digital services.
Impact of regulation
European regulators have been more prescriptive in shaping platform infrastructure. Initiatives such as MiFID II, PRIIPs, and SFDR have forced European platforms to build capabilities that automate cost disclosure, suitability assessments and sustainability reporting. These requirements have encouraged platform providers to invest in regulatory technology and embed it within their architecture.
In the UK, platforms are facing a different but equally demanding environment. Consumer Duty has emerged as the defining regulatory driver, with the report identifying it as the top board-level priority across all participating firms. Importantly, more than three-quarters (78%) of UK platforms allocate between 16% and 30% of their total change spend to regulation-related initiatives. This level of investment highlights both the weight of the compliance burden and the urgency of transforming operating models.
“There are practical lessons to be taken from European platforms that have successfully turned regulation into a catalyst for innovation.
By reimagining compliance through the lens of infrastructure, platforms can reduce cost, improve outcomes and free up resources to focus on innovation.”
While many UK firms treat regulatory projects as distinct workstreams, leading platforms in Europe are increasingly embedding regulatory functions directly into product design and infrastructure. This shift ensures better alignment between compliance and customer experience, which is exactly what Consumer Duty now demands in the UK.
The challenge in the UK is not just regulatory pressure but the compound effect of scaling under that pressure. The Platform Horizons Report shows that operational efficiency is being squeezed. Growth ambitions remain strong, but inconsistent onboarding timelines and persistent manual processes suggest many firms are attempting to scale on unstable foundations.
As platforms work to meet compliance expectations, there is a risk that innovation takes a back seat. While some three-fifths (61%) of IT budgets in high-performing firms are directed toward change initiatives, many others are stuck in a loop of maintenance and patching, allocating the majority of spend to running existing systems. This divide risks creating a two-speed platform economy, where some firms can adapt to market needs quickly, while others are slowed by operational drag.
Integrated compliance
There are practical lessons to be taken from European platforms that have successfully turned regulation into a catalyst for innovation. By embedding tools that aggregate end-investor portfolios and provide real-time analytics within a single platform, these firms have built infrastructure that not only supports compliance but also delivers deeper insights for advisers.
This integrated approach enables a holistic view of client wealth, helping advisers meet suitability and disclosure requirements while improving the overall adviser and end-client experience.
The UK’s path forward may lie in this same model. Platforms must treat Consumer Duty as more than a reporting obligation – it should be a design principle embedded throughout onboarding, communication, pricing and servicing. By reimagining compliance through the lens of infrastructure, platforms can reduce cost, improve outcomes and free up resources to focus on innovation.
UK platforms would do well to look to mainland Europe not only for inspiration, but as a benchmark for what is already being achieved.”
Legacy systems remain a significant issue. Infrastructure modernisation is still a work in progress for many UK platforms, with almost half (47%) citing it as a current strategic priority. Until firms upgrade their technology stacks, ambitions around automation, integration and innovation will remain stymied.
Europe’s edge here is not necessarily one of regulation or size, but of timing. In many cases, continental European platforms have already absorbed the cost of change and are now building on more modern, adaptable foundations. For UK platforms, investment in next-generation architecture – including API frameworks, scalable compliance tools and embedded analytics – will be necessary to remain competitive.
Ingredients for leadership
Despite current challenges, the UK platform market remains one of the most dynamic globally. The ingredients for leadership still exist: a well-developed advice sector; high regulatory standards with a laser focus on delivering better client outcomes; and a rich fintech ecosystem.
To realise its full potential, the UK must take a more integrated approach to technology and regulation. UK platforms would do well to look to mainland Europe not only for inspiration, but as a benchmark for what is already being achieved.
The next generation of UK platforms will not be defined by feature lists, but by infrastructure. Those that modernise early, embed compliance by design and build for flexibility will be best placed to deliver value to ever more demanding clients in a fast-moving and competitive market.
Juan de Palacios is chief strategy and product officer at Allfunds
