Despite these challenges, platforms are seen as a promising part of the wealth industry, with MyNorth attracting $3.9 billion in net inflows for AMP last financial year, in stark contrast to a $3.9 billion in net cash outflows across the whole group.
“Following these fee reductions, MyNorth will be one of the best-value wrap platforms in the market
and will compete very strongly on price across a range of account balances,” the chief executive of AMP’s Australian wealth management division, Alex Wade, said.
Westpac is also opting to keep its platform, Panorama, as part of a major wealth restructure announced on Tuesday.
According to Chant West data prepared for AMP, the changes will mean the MyNorth platform offers lower administration fees than key rivals, which include platforms owned by National Australia Bank, Westpac, Commonwealth Bank, Macquarie and Netwealth.