Updated Monday, July 28, 2014 as of 2:15 AM ET
Blogs - Practice Perfect
What to Look for in a Wealth Management Platform (And Why You Should be Looking)
Thursday, November 1, 2012
Print
Email
Reprints

Many financial institutions have spent the past several years investing significant staff time and dollars in a quest for an ideal and feature-rich wealth platform. At the same time, technology providers were attempting to offer the industry the one-stop platform of choice.

For financial institutions, a considerable proportion of their investment has centered on the attempt to add incremental capabilities and features to their legacy mainframe back office systems. These systems were designed during a time when the financial advisor/client relationship revolved much more around transactions involving individual securities, and when advisors stayed close to their terminals and conveyed information to clients over the phone.

Times have changed, of course, and advisors and their clients interact with each other and with financial data in more dynamic ways. Clients have easy access to abundant consumer-oriented financial data and sophisticated investment analytical tools. They also expect their advisors to produce answers whenever they want them -- no matter where the advisor might be at the time the question arises.

Legacy-based wealth platforms have been challenged, at best, to meet advisors’ needs in this new environment, and thus system utilization rates by advisors have been low.

In the second quarter, Aite Group conducted an online survey of 200 financial industry technology executives.  “We asked advisors to identify their needs and pain points,” says Alois Pirker, research director for the wealth management industry at Aite Group. “The results revealed that advisors have many challenges, and high on their list of priorities are system integration, desires for mobile functionality and real-time streaming market data.”

“The majority of firms will have to look externally to address their needs comprehensively, rather than try to reinvent and adapt their own home-grown solutions,” Pirker says. “Advisory firms realize they have to make changes, because we live in a new world. You have to invest in your business in order to move forward.”

The central industry dynamic, Pirker believes, isn’t so much about large versus small, or even large technology budgets versus small, but a divide between investment firms that are “willing to innovate and move the business model forward, and those that aren’t.”

Today, the competitive landscape has changed. It is no longer just the advisory firms competing against one another. They are now challenged by self-directed, online trading services that have additional capabilities at their fingertips that the advisory firm may lack.

What are the hallmarks of a wealth platform designed from the ground up around the needs of advisors in today’s “new world?” We offer some thoughts in the form of a checklist to guide your consideration of this important question. These questions outline what advisor firms should ask themselves when developing their next generation desktop platforms.

1. Can the system achieve "anytime, anywhere" access?

That is, does it deliver the ability both for advisors and their clients to leverage the system from any computer, at any time? This capacity is based on a web-based framework, without a requirement for a dedicated line. A system should have “anywhere” access from any web browser, and solid strategies for future technologies such as mobile and HTML5, the latest markup language for structuring and presenting content on the Web.

2. Is the system cloud-based? 

Investment firms with large internal legacy systems can take months to complete system updates. In contrast, a cloud-based Software as a Service (SaaS) model enables immediate updates and requires much fewer resources than in-house systems. The “anywhere, anytime” nature of cloud-based systems enables efficient access from multiple devices.

3. Is the system built on a platform of interoperability?

That is, can it integrate with other systems and tools, while also offering freedom from existing back office and clearing provider systems? A basic test of a system’s interoperability is being able to share real-time market, client and account data with any third party system that may benefit from it. 

4. Does the system facilitate full integration into back office and other third-party systems, bringing together market, client, account and transactional data?

Advisors should be able to showcase a client’s real-time portfolio to clients using market research and data tools without burdensome navigation. The system should also offer a full application programming interface (API) that can allow data and applications from third-party systems to follow one another.

5. Does the system provide real-time streaming market information?  

The systems should offer all the advantages of a web-based, cloud-based solution while simultaneously delivering the crucial streaming market data that investment advisors demand. Future-focused solutions don’t require advisors to decide between browser-based or streaming capabilities. The same solution should now be able to deliver both capabilities.

(5) Comments
We have direct and efficient providers of Bank Guarantee (BG's), Insurance Guarantees, MTN, Confirmable Bank Drafts, Standby Letters of Credit (SBLC) and Third Party Guarantees. If you are a potential Investor or principal looking to raise capital, we will be happy to answer any questions that you have about this opportunity and to provide you with details regarding these services. Our BG/SBLC Financing can help you get your project funded, by providing you with yearly renewable leased bank instruments. We work directly with the providers of these instruments. Leased Instruments can be obtained at minimal costs to lessor compared to other banking finance options. This offer is open to both individuals and corporate bodies. If you have need for Corporate loans, International project funding, etc. or if you have a client that requires funding for his project or business, We are also affiliated with lenders who specialize on funding against financial instruments, such as BG, SBLC, POF or MTN, we fund 100% of the face value of the financial instrument. Inquiries from agents/ brokers/ intermediaries are also welcome. If you are interested in seeking to raise finance for your business/projects in this way, please contact me for more information. Martinez.mann@yahoo.es or martinez.mann@hotmail.es
Posted by Martinez M | Sunday, January 27 2013 at 9:56PM ET
This offer is open to both individuals and corporate bodies. If you have need for Corporate loans, International project funding, etc. or if you have a client that requires funding for his project or business, We are also affiliated with lenders e-papierosy who specialize on funding against financial instruments, such as BG, SBLC, POF or MTN, we fund 100% of the face value e-papierosy of the financial instrument. Inquiries from agents/ brokers/ intermediaries are also welcome. If you are interested in seeking to raise finance for your business/projects in this way, please contact me for more information.
Posted by misiek m | Wednesday, March 27 2013 at 9:31AM ET
We can help you lease SBLC/ BG to get your project funded or for your clients, by providing you with yearly renewable bank instruments from a Direct and Genuine provider. We also have an excellent seller source for [MTN] Thanks, Andrew Zibberman Tel: +44 742 3190161 email: fipr2000@gmail.com
Posted by Andrew z | Monday, August 26 2013 at 11:22AM ET
This article very effectively captures the hallmark of a good system. Having a system with all the characteristics listed above is half the battle won. At least, you as an advisor are not hindered by lack of information and / or restricted access. An antiquated system will sound the death knell for your business.
Posted by tasha123 s | Saturday, November 02 2013 at 2:45PM ET
A RELIABLE AND A GENUINE PROVIDER THAT CAN DELIVER BANK GUARANTEE AND OTHER FORM OF BANKING INSTRUMENTS FOR LEASE AND SALES WHICH ARE MAINLY FRESH CUT.

Bank instruments which are cash backed can be used as thus; clients looking for loans to finance their businesses also serve as a collateral to get loans from banks in other to engage into any project at hand further details will be emailed upon request.

Email: mklease.broker@gmail.com Skype ID: mklease.broker

Posted by Muhammed K | Tuesday, July 15 2014 at 9:14PM ET
Post a Comment
You must be registered to post a comment.
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.
Lists
2014 Summer Reading List for Advisors

Current Issue

The June Issue is now online!


TWITTER
FACEBOOK
LINKEDIN

Industry Events

August 10, 2014 |

September 9, 2014 |

September 17, 2014 |

September 20, 2014 |

September 28, 2014 |

Already a subscriber? Log in here