Platform consolidation raises competition concerns

20 April 2026

Six-in-ten (61%) financial advisers expect platform consolidation to accelerate over the next three years, Scottish Widows finds. This figure increases to 75% for firms managing more than £500 million.   

In Scottish Widows’ latest Investor Confidence Barometer, nine-in-ten (92%) advisers believe platform competition is important for client outcomes, nearly three quarters (72%) recognise the importance of niche providers and over a third (35%) are worried about the extent of platform consolidation. 

Nearly two-thirds of advisers (62%) said the collapse of a platform would impact their business, with a quarter (23%) strongly agreeing with this sentiment. More than half (52%) are also concerned about increased private equity ownership of platforms. 

Jenny Davidson, Intermediary Wealth Director at Scottish Widows said: “Competition is good for advisers and clients. It keeps the market vibrant, driving innovation and a focus on good outcomes and value. However, the market is currently suffering from pressure on revenues and increasing costs from managing regulatory change and investing to meet the increasing expectations of advisers and their clients. Platform consolidation feels inevitable.” 

“The risk for advisers is their platform of choice becoming collateral damage, leading to a constrained and less competitive sector. This further emphasises the importance of picking a platform that is financially strong and committed to a future in the market, with a clear roadmap for growth.” 

 “As advice firms continue to expand their client base in the coming years, there will be increasing pressure on platforms to demonstrate their robustness and ability to meet the extra demand. Stability and the ability to continually invest in best-class experience will stand out as key pillars for supporting the next generation of advice businesses."

Download full press release (PDF, 143KB)

Notes

Methodology

Censuswide surveyed 1001 UK consumers with a minimum of £100k investible assets, who have a pension and were aged 18+. This survey was carried out from 22/07/25 to 29/07/25.

About the Investor Confidence Barometer

Since 2022, Scottish Widows’ Investor Confidence Barometer has provided a unique snapshot of how financial advisers, paraplanners, advised investors and non-advised investors are feeling about today's emerging industry issues.

About Scottish Widows

Founded in 1815, Scottish Widows is part of Lloyds Banking Group, the UK’s largest digital bank and financial services group. With more than £232bn assets under administration and more than 6 million customers, Scottish Widows’ award-winning product range includes workplace and individual pensions, annuities, life cover, critical illness and income protection, as well as savings and investment products.

More than 2 million customers access Scottish Widows products and services through the Lloyds Bank and Scottish Widows apps, in addition to accessing directly through independent financial advisers. The Scottish Widows Platform is trusted by more than 18,000 advisers and 5,400 advice firms, which manage the pensions and investments of almost 166,000 clients.