SunGard has identified ten trends that will shape the wealth management industry in 2010.
The ten trends are:
1. More investors are seeking advice as economic conditions remain uncertain.
2. Service will persist as a key differentiator for advisors to attract and retain clients.
3. Automation will remain critical to profitability, productivity and the ability of firms to serve clients as a trusted advisor.
4. Increased client communication and online self-service tools will help strengthen relationships between the network of investors and their advisors.
5. Firms will require data aggregation and systems integration for efficiency and growth.
6. Regulatory requirements and demands for transparency will drive the need for firms to monitor risk at both the client and corporate levels.
7. A shift to open architecture and Software-as-Service solutions will help firms increase transparency and accelerate time-to-market.
8. Selective outsourcing will become an attractive alternative for firms looking to reduce costs and maintain or increase service levels.
9. Trading, retirement and financial planning needs will continue to grow globally, particularly in emerging markets such as India and China.
10. Establishing the right mix of services, products, client segments and technology will help define the leaders in wealth management.
Blaine Maxfield (pictured), chief operating officer of SunGard’s wealth management business, says: “Firms are focused on adapting and evolving their business models to meet the changing needs of their clients, as well as effectively aligning their internal operations to improve efficiencies and workflows throughout the organisation. As a result, firms will continue to emphasise asset growth strategies, while reducing costs through adviser productivity and self-service technologies. Increased communication with investors will also help wealth managers to increase transparency and solidify their role as a trusted adviser.”
Alois Pirker, research director at Aite Group, says: “Technology is the enabler of both transparency and efficiency, but needs to be approached in an integrated fashion across the various systems available in a firm. Increasing the efficiency of systems entails the advisor’s front-office platforms that integrate various functions in one desktop, ranging from asset allocation to financial planning, to portfolio management.”