An increasingly tough domestic, regional and global regulatory ecosystem. Sustained margin pressures. Changing client service demands. Heightened competition. And now country leader and political uncertainty.
These are interesting times for the UK’s wealth managers, especially smaller players.
To grow in this environment, firms will need to find ways to broaden their horizons, yet without increasing complexity and overheads.
A question of performance
Delivering healthy risk-adjusted investment returns that can satisfy clients’ expectations is a case in point.
It’s a perennial challenge. Problem is, in this low yield, central bank-dominated era, the solution has become a lot more complicated.
Sticking the bulk of your clients’ money in various government bonds and some favoured developed equity markets, then sitting back and waiting for the returns to come in is hardly a recipe for success.
Instead, wealth managers will have to look further, wider and deeper into other asset classes and jurisdictions.
Equipped for the job?
But as you know, that demands more capabilities.
There’s more research to collect and manage. And you need the trading, portfolio management, accounting and performance measurement tools to support those multi-asset class lifecycles.
Likewise, seeking out investment opportunities in a wider range of international markets, or targeting new clients in different jurisdictions, brings complex market idiosyncrasies and regulatory compliance obligations.
All of which can add up to substantial cost.
So partnering with the right software and service providers that can support all those front, middle and back office activities while saving you from having to ramp up your headcount and expenses is vital.
Only by leveraging a new breed of client and investment centric technology tools and automated operational platforms can wealth managers provide the stand out servicing and insightful investment guidance that will build customer loyalty and set you apart. It’s just a matter of expanding your horizons.