About Asset & Wealth Management
Asset and Wealth Management industry is looking ahead at a decade of disruptive innovation with changing customer expectations, reducing profitability, increasing regulatory pressure and competition from fintech firms
The challenging trends pose an opportunity for asset and wealth management firms to embark on a journey to transform the business through optimization of customer & advisor experience, digitalization of platform for increased STP, agility & cost variabilization and reduction of manual business operations.
With deep industry expertise and Customer Experience focused Engineering DNA, HCL shall formulate, accelerate & deliver Digital Transformation for Asset and Wealth Managers
AWM: Opportunities to Seize
By 2025, assets under management to grow to US$145 trillion from US$ 111.2 trillion in 2020
Of global assets under management sees active management growth reaching $87.6 trillion by 2025
In 8 years time, real assets, private equity/debt will more than double in size
Of global assets under management sees passive management reaching $36.6 trillion by 2025
Fees are being pushed down by investors and regulators. Increased regulation, competition and new entrants are disrupting value chains. As low-cost products gain market share, and larger players benefit from scale economies
We are now stepping into an era in which instant fulfilment and error-free service are the norm
The global financial analytics market expected to grow from USD 6.9 billion in 2018 to USD 11.4 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 10.7%.
Strategic Partner for Asset Management Platform Digitalization; Wealth & Customer Advisory Platform Transformation
The Bank had a requirement to improve the STP. As volumes of the bank had grown, their systems were custom built and other legacy systems were not scalable. The challenges included:
- Systems were not flexible to respond to projected market initiatives
- Lack of STP
- lack of standardized business process across regionsLack of standardized business process across regions
- No single source of data repository were some of the challenges.
As a solution, HCL has implemented a platform to achieve 80% Straight through processing (STP). The platform is scalable to handle 10X trade volumes, which eventually managed the end-to-end processes across all regions, and enabled the users to view exposure across all products with effective risk management. The Platform provided the flexibility to respond to the planned and projected future Market Initiatives’ (e.g. central counter party) and take advantage of commercial opportunities.
Enabled superior Customer Experience
End to end wealth management platform support & maintenance with committed cost reduction
To have a single Wealth Management Platform to connect all the core Business Lines in the organization.
HCL has partnered with the Wealth Management Enterprise to implement a common Wealth Management Platform consistently covering most required functionality across location as well as risk management, financial accounting, and controls required to operate the WM business. As a first step, HCL migrated 30K Trades, defined a uniform data format, created a single window for all levels of users in the enterprise. This single platform enables the Enterprise to deliver their best digital, advisory and support tool to most of their Clients and staff. The platform aligned 5 different business divisions across multiple geos, integrated with multiple systems.
The Utility gave 34% Operational Gains with a total productivity of over 60%. This also reflected in the overall Application & Resource Rationalization.
Avaloq Global Wealth management platform implementation
HCL had set a Dedicated Center of Excellence for Trained and Certified Professionals on Avaloq Banking System to implement Avaloq 4.1v for all the modules. This included regulatory changes including MIFID 2, Structural Reform Programme (SRP), Derivatives Legislative Programme (DLP), Strategic Client Reporting (SCR), GIML Migration and some key processes such as Corporate Actions, Payments, Settlements, Interest & Custody. Post Implementation, the client realized 40% effort reduction, and improvement in the Straight through processing (STP) rate. HCL introduced new features such as enhanced Fiduciary module, Client closing Process in Avaloq which were not part of Model Data Bank.
The net benefit was Improvised Investment advices and statements for Client’s customers.
IBOR implementation and consolidation of ABORs
The client made a strategic decision to decommission 27 core applications in Fund Services area and 20 odd auxiliary apps, as CFS was struggling to manage siloed data management functions with heavy reliance on data quality, timely availability, reconciliation tasks performed before the data is ready for further Positional management functionality and Asset Servicing.
Simcorp Dimension was chosen was a product to implement the decommissioning functionality. The Asset Classes covered were Equity, Fixed Income, FX, Mutual Funds, Futures and Options.
It was implemented in 2 phases:
- Phase 1 implementation included – Simcorp Investment Data Management (IBOR), Performance Measurement and Attribution, Trade Compliance, Transactions and reconciliation.
- Phase 2 - Performance Manager, ABOR, Fund Administration, Corporate Actions, Risk Metrics.
The product provided a uniform view of information to all levels in the hierarchy