At a time when the Australian financial services market is undergoing massive change to bring archaic regulations into the modern world, wealth management platform HUB24 (ASX: HUB) continues to emerge as the platform of the new era, racking up industry awards alongside $2.6 billion in net inflows as Advisors vote with their managed wealth.
For the quarter ended 31 March 2022, $2.6 billion of net inflows into the HUB24 wealth management and investments platform represented a 36.4% increase on the previous year. It also took the year-to-date inflows to $9.3 billion for there now to be $68.3 billion in funds under administration (FUA) on the platform.
Driving the inflows is the transition in wealth management practices towards digital mediums which cut costs and time compared to the traditional labour-intensive methods which HUB24’s platform was developed to disrupt.
In a report published by the Productivity Commission, $6 Trillion of wealth will be handed over in the next 30 years in the form of generational transfer of wealth from the Baby Boomer generation to their more tech-savvy beneficiaries.
This new generation of high net worth investors have grown up with Google and have learned to make investment decisions without the traditional stockbroker model – the exact market that HUB24 caters to with their comprehensive range of domestic and international investment products.
Given the inflow of funds where more financial advisors and accountants are shifting their client accounts over to HUB24, it should come as no surprise that HUB24 now ranks 1st for adviser advocacy by Adviser Ratings, an industry aggregator.
On top of that, HUB24 was recently awarded 1st place for Product Offering while maintaining their position as Best Platform Managed Accounts functionality for the sixth consecutive year.
In total, there are now 3,432 professional advisors that utilise the HUB24 platform for their clients, a 24.4% increase on the previous year to consolidate their position as the platform of choice within financial service circles.
Those numbers are likely even further on the rise with confirmation that HUB24 has commenced integration of HUB24’s products team following their $386 million acquisition in October 2021.
While Class is still functioning as a standalone business, centralised governance of finance, legal and HR have transitioned to HUB24 while joint discovery sessions are underway to identify additional opportunities to leverage the combined capabilities of the two businesses.
These discovery sessions will seek to identify growth initiatives that can be deployed with the possibility of transitioning funds managed by Class’ software onto the HUB24 platform.
As of September 2021, there was $291 billion in assets being administered on the Class Super platform.