A strategy for success

By: Matt Bellias

The wealth management sector is changing. Client needs are evolving. To remain competitive, wealth managers must view technology as a strategic tool.

  1. Improve the Client Experience
  2. While a wealth manager must industrialize operations to remain competitive, they must also offer a custom, personal experience to each individual investor. Since each investor’s expectations are unique, determining the right service level and delivery channels can be complicated. To remain competitive, wealth managers must find technology that delivers the high-quality, efficient, and customized experiences their customers expect. Modern technology improves visibility of investments and streamlines contact, optimizing the investor/wealth manager relationship.

  3. Invest in Core IT Operations
  4. Only part of the wealth manager’s operation is client-facing. Most operational effort takes place behind the scenes. To improve efficiency and reduce cost and risk, resource-intensive operational tasks should be automated. In its  “IT in Wealth Management 2015” report, EY flags client account administration, accounting and reporting, performance measurement, cash management, reconciliation, corporate actions processing, and trading support as key IT investment areas.

    Moving core IT operations onto a modern platform should be a priority. Outdated systems are inefficient and expensive; manual workarounds increase cost and introduce risk; and custom applications make compliance with new regulations and upgrades to existing software complex. New technology automates low-level administrative tasks and creates a scalable and cost-efficient operation. 

    Automating data flow helps advisors to drive investment performance, manage risk to mitigate losses, support investment decisions, and report successes. With a modern technology platform, data is processed in near real-time and visibility passed on to clients. Reports are delivered across a variety of channels to offer transparency, context, convenience, and reassurance.

  5. Outsource Non-Core Activities
  6. Outsourced service providers are increasingly managing the middle-to-back office, allowing managers to focus on core competencies. The benefits? Access to scalable hardware, infrastructure, personnel and skills, increased agility, and faster time to market. Even where full outsourcing is not an ideal fit, outsourcing just one component of operations has significant cost benefits.

    Industry growth, new technology, and increased regulation are challenging wealth managers to re-think operations. Once viewed as just a support function, technology now drives business change and provides product and service differentiation.  Strategic use of technology lowers the cost of client engagement, increases client satisfaction, streamlines operational efficiency, and reduces risk. Operating models must keep up with digital innovation so that IT investment decisions are sound and effective.

Working with a reliable and proven front-to-back office solutions provider, like SS&C, allows wealth managers to align operations to their firm’s strategic business objectives. SS&C helps wealth managers grow and adapt to market changes, which is why firms of all sizes rely on SS&C to power their operations and fuel their growth. For more information please contact us at solution@sscinc.com or 1.800.234.0556.