According to SEI, in an era where wealth management organizations face increased pressure to grow revenue and create a differentiated client experience, 80% of those polled at the ABA Wealth Management and Trust Conference plan to invest in operational infrastructure in the next 12 months in order to help meet their goals.

Much of the investments will focus on shifting toward using one operating platform, as more than one-third (42%) of those polled plan to move to a single operating infrastructure environment within the next 24-36 months.

Nearly half (48%) of the wealth management organizations polled view “creating efficiencies” as the phrase that best describes their organization’s operational philosophy, a goal that can be met, in part, by moving to a single operating infrastructure environment. Moving operations to one centralized infrastructure enables wealth management organizations to increase the amount of time they spend on revenue-enhancing activities, including client service and business development.

“Over the past few years, as end investors have called for more personalized relationships with their financial advisors, we’ve observed a fundamental shift in the way the wealth management industry is approaching growth and the client experience,” says Dave Schug, managing director of SEI’s Global Wealth Services. “Now, more than ever, wealth management organizations need a solution that significantly reduces risk, inefficiencies, and administrative overhead. Ultimately, they need a solution that gives their wealth managers the time to do what they do best—build their clients’ wealth and increase the depth of their client relationships.”

The poll also revealed that while no respondents report a “scared” 2012 economic outlook, nearly two-thirds (60%) are “cautious.” In addition to focusing on “growing revenue” (48%), wealth management firms are also committed to “creating a differentiated experience for clients” (28%).

The poll was completed by 25 wealth management executives, compliance officers, and administration professionals from a mix of national and global, regional, community, and family-office wealth management organizations. SEI conducted the poll at the ABA Wealth Management and Trust Conference held March 14-16 in Scottsdale, Ariz.

 

 

[This article was posted on May 1, 2012, on the website of ABA Banking Journal, www.ababj.com.]  

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