Trust Platforms Leave the Green Screen Behind: Moving from High Touch to High Tech

by William Trout, June 4, 2014
North America

Abstract

Bank trust companies have largely remained backwaters in terms of adopting 21st century technology and business practices, relying on high-touch, personalized service to keep clients happy. Today, however, client expectations, competition for assets, and the need to scale the business are making modernization of the trust business imperative.

In Trust Platforms Leave The Green Screen Behind: Moving From High Touch To High Tech, Celent looks at ways the trust industry can turn back years of declining market share and regain its competitive position. Celent also considers how trust accounting system vendors can support this objective. As the report makes clear, technology will play a key role in helping trust companies find their delivery sweet spot and break the traditional industry tradeoff between high touch service and scale.

The report also looks at other trends relevant to the client experience, including the increasing adoption of mobile tools and technology and the role of back office technology and clean data in enabling client service enhancements. The report concludes by recommending steps banks can take to break down silos and enable a consistent, cross-channel experience.

“Clients view investments they hold within an institution as a whole, not in terms of separate brokerage, trust, and bank channels. Banks must look beyond the vertical technology structures that exist today and develop integrated platforms consistent with the client perspective,” says William Trout, Senior Analyst with Celent’s Securities & Investments Group and author of the report.  

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 subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

3

State of the Industry

4

 

Trust Administration

4

 

Investment Management

5

 

The Trust Company Today

5

Outsourcing and the Trust Technology Vendors

7

 

The Integrated Platform

7

 

Investment Management Outsourcing

9

 

The New Front Office … Or Is Front the New Back?

10

 

Mobility

12

What’s Next?

13

Leveraging Celent’s Expertise

14

 

Support for Financial Institutions

14

 

Support for Vendors

14

Related Celent Research

15

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