Why I think this could be one of the best ASX 200 growth shares to buy

This company is already winning advisers, attracting flows, and taking share in a market that still has room for better technology.

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Hub24 Ltd (ASX: HUB) is not the loudest growth share on the ASX.

It is not selling products to consumers, building artificial intelligence (AI) models, or chasing a glamorous global market. But I think it is one of the best ASX 200 growth shares to buy for the long term.

The reason is simple. Hub24 sits in the middle of a wealth management industry that is still changing.

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Image source: Getty Images

A strong position in a large market

Hub24 provides investment platform technology used by financial advisers and their clients.

That may sound niche, but I think it is a very attractive part of the market.

Financial advice is becoming more complex. Clients can have superannuation, pensions, managed accounts, tax needs, estate planning considerations, and investment portfolios that need to be managed across different life stages.

Advisers need systems that make that work easier.

That is where Hub24 has built its position. Its platform helps advisers manage client money, administration, reporting, and investment choices more efficiently.

I like that because once a platform becomes part of an advice practice's daily operations, it can become very sticky. Advisers do not want clunky technology, poor service, or unnecessary admin slowing them down. If Hub24 keeps delivering a better experience, it can keep winning share.

It still has room to grow

One of the big reasons I like Hub24 is that it is already large, but not close to being finished.

In its latest update, Hub24 said total funds under administration reached $151.7 billion at 31 March 2026, up 22% on the prior corresponding period. Platform funds under administration reached $127.8 billion, up 25%.

That is already a substantial business.

But the company also noted that its platform market share was 9.7% at 31 December, up from 8.3% a year earlier. This means it ranked as the sixth-largest platform by funds under administration.

That tells me two things.

First, Hub24 is clearly gaining ground. Second, there is still a lot of market share available to win from incumbents.

This is the part of the story I find most compelling. Hub24 does not need to invent a new industry to grow. It needs to keep attracting advisers, winning flows, and improving its platform in a market where many older providers may still be vulnerable to better technology and service.

Why I'd buy this ASX 200 growth share

I think Hub24 has several traits I like in a growth share.

It operates in a large market, has a strong reputation, benefits from structural changes in wealth management, and still has meaningful market share to win.

There are risks to consider. Competition remains strong, and platform businesses can be sensitive to market falls because funds under administration are linked to asset values. Valuation is also important, particularly for a high-quality growth stock.

But I think Hub24's growth runway and current valuation remain attractive.

Foolish takeaway

Some growth shares need a dramatic breakthrough to justify investor optimism.

Hub24's opportunity looks different. The company is already doing the thing it needs to do: winning advisers, attracting flows, and taking share in a market that still has plenty of room for better technology.

That does not mean the share price is guaranteed to move higher. But if Hub24 keeps strengthening its position over the next few years, I think it could become a much larger and more valuable ASX 200 business.

Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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