Lawrenson says BT is making some improvements to its insurance offerings through the wrap platform as part of a three-pronged approach to improving functionality and efficiency, which also includes improvements to its direct equity capability and ensuring compatibility of the Wrap system data with the software used by accountants on behalf of self-managed super fund clients.

The mere presence of industry funds, and the deepening of their product offerings, should be enough to maintain healthy competition in the platform market, even if consolidation in the sector continues apace. “The average account in the industry funds is about $10,000 whereas retail funds it’s more like $50,000 or $60,000,” Solomon says. “But with more growth in those funds, if they don’t change that formula, then they do become quite a threat to the retailers. Along the track that will push the retailers much harder into reducing their fees, certainly some of those upfront fees; the 1 per cent [entry] fee is the most vulnerable.”