The world wealth after seeing a sharp decline of around 40% from the peak value of around $95 trillion in 2007, is witnessing strong recovery as world emerge out of the global financial crisis. The HNIs are now averse to the product push strategy, and want to compensate their bankers only on the quality of advisory provided. This fee based model also suits the financial services firms as it provides a continuous revenue stream. The market has become very competitive as firms across the landscape, either have or plan to launch, a dedicated Wealth Management arm. Even though Asia will be high growth region and attract firms with expansion plans, Europe and US due to its huge wealth base will be the most hotly contested markets.
There would be two distinct models for wealth managers:
1. First one will be the platform based delivery, where the advisors and clients would collaborate to identify the best suited products as per the financial plan. The platform providers will need to employ sophisticated technologies to cater to scale and expected functionalities.
2. In the second model the unique needs of customers will include philanthropy, trusts, investments in real estate, wine and arts. Here the systems should be capable to handle these transactions and provide full investment life cycle support. Also by outsourcing the middle office and back office operations, the firms not only get the best in class service, the also become more agile by reducing a large chunk of their fixed costs.
Apart from the advisory models, the firms will be making huge investments in CRM and reporting tools to better understand and retain clients. Managing risk for the customers and positive action to handle risks along with its accompanying collaboration and workflow aspects will be very important. And finally, the consolidation through M&A would result in huge spending in IT and operations integration.
HCL Domain Expertise
By virtue of over a decade long partnership with wealth management firms across the globe, HCL has in-depth experience in the entire wealth management life cycle: customer acquisition, profiling, financial planning, portfolio management, performance monitoring and portfolio rebalancing, asset servicing, risk and compliance management, reporting and data management.
We leverage our rich experience in the wealth management to provide consulting services in areas of business strategy, process re-engineering, compliance and risk evaluation, platform blue-printing. The domain expertise has also been leveraged by our clients to reduce the time to market by shortening the system development time, backed by domain driven independent testing.
- 6+ years of relationship with a Global Wealth Manager (among the top 10 in the world), serving the HNI & UHNI segment, in managing significant portions of the application landscape for their Geneva, and Singapore businesses
- Currently managing the end-to-end application portfolio for the entire US business (brokerage as well as advisory sub-divisions) of the leading Global Wealth Manager
- 12+ years of engagement with an Australian wealth manager which has resulted in cumulative savings of over $60mn+
- Extensive experience in the WRAP Solutions in the Australia and UK markets
- HCL Insurance Business Services (erstwhile Liberata Financial Servies), a FSA regulated entity, to provide Investment Accounting services
- Surface based Wealth Advisory Solution competency for high level of customer interactive experience
- Extensive experience in the periodic regulatory changes, demonstrated through the complete revamp of the financial and investment planning application, used by 10,000 advisors and 3,000,000 clients, for the MiFID compliance
- Experience in Implementation and support of Anti Money Laundering solutions like SMARAGD, Norkom and SearchSpace
- Implementation of Collateral Reporting and Monitoring portal and tool for High net worth customers, to help Bank users in efficiently assess the Customer’s exposure to risk
- Experience in platform integration and platform modernization for the top platform based UK wealth manager
- In-house developed data masking tool to comply with the special data secrecy needs of offshore banking centers like Switzerland and Luxembourg
- Partnership with SAGE Prospero and NorthStar to provide end-to-end Wealth Management solution to our customers