Pressure to increase revenue and create a “differentiated client experience” has pushed 80 per cent of wealth management organizations to commit to investing in operational infrastructure over the next year, according to an SEI survey.
Over one third (42 per cent) of the organizations polled intend to transfer to a single operating infrastructure environment within the next 24-36 months, while almost half (48 per cent) of wealth managers consider “creating efficiencies” as a vital part of their operational philosophy.
Efficiencies can be achieved, in part, by operating from one centralized infrastructure, the firm said. This enables wealth management firms to spend more time on “revenue-enhancing activities,” such as client service and business development.
“Over the past few years, as end investors have called for more personalized relationships with their financial advisors, we've observed a fundamental shift in the way the wealth management industry is approaching growth and the client experience,” said Dave Schug, managing director of SEI's Global Wealth Services. “Now, more than ever, wealth management organizations need a solution that significantly reduces risk, inefficiencies, and administrative overhead.”
Although none of the respondents reported that they were “scared” by the 2012 economic outlook, almost two thirds (60 per cent) remain “cautious”. In addition to focusing on “growing revenue” (48 per cent), the survey also highlighted that wealth management firms are also committed to “creating a differentiated experience for clients” (28 per cent).
The poll was completed by 25 wealth management executives, compliance officers, and administration professionals during the ABA Wealth Management and Trust Conference in March.