German B2B Platform market hits €200bn
Assets held on German B2B adviser and institutional platforms reached €205bn at the end of 2016 following a year-on-year increase of 12.1%, according to Platforum’s latest research into fund distribution in Germany and Austria.
German B2B platforms have almost doubled their assets under administration (AUA) in the last five years, having grown at a compound annual rate of 13.8%. While this has outstripped the growth of the German fund market it is still some way below the rate of 19.1% enjoyed by UK adviser platforms in the same period.
The leading propositions remain the Attrax, Fondsdepot Bank and ebase, which have increased their market share to 53.2%.
In Austria, the B2B platform market is much smaller than in Germany and Platforum sizes it at €14.5 – up by 7.8% year-on-year.
Platforum senior analyst, Rodolfo Crespo, comments: “This is a new milestone for the German platform market ahead of MiFID II. We estimate that there are €305bn of third-party fund assets in Germany, of which €205bn are held on B2B platforms. A further €27bn are held on direct platforms or online stockbrokers. The increasing significance of platforms for fund distribution in Germany is clear.
Most B2B platforms in Germany work with both tied and independent intermediaries. AUA growth is being driven by institutional clients as well as independent wealth managers and adviser pools.
German platforms are still busy preparing for MiFID II including the requirement to handle different pricing models depending on the needs of their distributor clients. However, we are positive about their growth prospects as advisers look turn to on-platform investment solutions and institutions look to outsource the administration of their third-party fund offerings.
The German B2B platform market is largely dominated by local players and the leading propositions increased their market share in 2016. However, they are facing increasing competition from cross-border platforms who see Germany as a key market for international expansion.”