Driving Efficiency Through Wealth Management Platforms

by Alexander Camargo,  Isabella Fonseca, July 15, 2013
Industry Trends


Over the past year, Celent has witnessed an evolution in how the wealth management platform is defined. There is an increasing appetite for an enterprisewide single infrastructure solution that combines technology and services into a completely integrated front-to-back service offering.

In the report, Driving Efficiency Through Wealth Management Platforms, Celent explores the emergence of this new type of platform in the larger context of emerging global trends in the wealth management industry

Amid increasing regulatory burdens, volatile markets, and low margins, wealth managers have to contend with an increasingly demanding client base, new service channels, and increasing competition. Such challenges are driving wealth managers to find ways to reduce costs by reducing vendor relationships while simultaneously increasing their investments in technology.

“The desire for greater efficiency and seamless operations in multiple geographies creates increasing demands on technology infrastructure, particularly related to integration across the front, middle, and back offices,” says Alexander Camargo, Analyst with Celent’s Securities and Investments Group and coauthor of the report. “The concept of the wealth management platform has continued to evolve toward a fully integrated end-to-end solution.”

“Implementing this type of platform requires significant resource allocation, technology investment, project management, and collaboration among various departments and with the provider,” adds Isabella Fonseca, Research Director with Celent’s Securities and Investments Group and coauthor of the report. “The payoff, however, is a scalable solution that provides global coverage and cost control while allowing wealth managers to focus on their core capabilities and differentiators.”

This report begins with an overview of wealth management technology platforms and outsourcing. The report then describes key drivers, market trends, and technology trends in the wealth management industry, and how they are leading to an evolution in wealth management platforms and client-vendor relationships. This is followed by an analysis of this new type of platform. The analysis includes business challenges solved, scale and scope of implementations, and key strengths and weaknesses of this emerging model. The report concludes with a forward-looking perspective on the wealth management industry.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

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Table of Contents

Executive Summary





Wealth Management Platform Definition



Outsourcing in Wealth Management


Market Trends



Drivers in the Wealth Management Industry



Platform Technology and Wealth Management Services / Outsourcing Trends


An Emerging Business Model



Business Challenges Solved



Scale and Scope



Final Assessment




Leveraging Celent’s Expertise



Support for Financial Institutions



Support for Vendors


Related Celent Research


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