Wealth Managers Go Rogue
Author: Joshua Richton (1 Articles)
Josh is an International MBA candidate at Tel Aviv University. Prior to Tel Aviv University, Josh was an analyst at The Bank of New York Mellon in the structured finance group. Josh holds a BSc from Yeshiva University in Business Management.
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There was an interesting article posted on WSJ.com website a few days ago titled “More Brokers Flee Big Firms, Taking Investors With Them”. According to the article, financial advisors are beginning to break away from the bulge bracket firms and starting, or moving to smaller independent firms. This trend is a result of the recent financial crisis that spooked many advisors, making them question how safe storing their clients’ assets are with the large firms. Additionally, a report released by Celent Consultancy on January 8, forecasts that wealth management firms will spend $3.7 Billion on IT Management this year. The report proposes the following conclusions that clearly present opportunities for the FinTech world:
* In 2010, wealth management technology spending at financial institutions will increase between 5% and 20%.
* Firms will invest mostly in technology around front office and back office requirements, including advisor platforms, compliance, reporting, self-service, and integration.
* Although financial firms will continue to focus on high net worth and ultra-high net worth individuals, they plan to expand and develop opportunities in the mass market and mass affluent segments.
* Firms are looking at ways to reach out to lower net worth clients with self-service models.
“Projects that were put on hold in 2008-2009 will likely restart in 2010,” said Arin Ray, analyst and coauthor of the report, in a statement. “Firms will focus on reducing costs and augmenting advisor productivity through the use of technology, carefully evaluating the ROI before making any investment.”
This presents a large opportunity for the Israeli technology sector. I know that the ingenuity and brilliance of the Israeli entrepreneurial environment can develop new programs that can assist these financial firms in their businesses.
Line BreakAuthor: Joshua Richton (1 Articles)
Josh is an International MBA candidate at Tel Aviv University. Prior to Tel Aviv University, Josh was an analyst at The Bank of New York Mellon in the structured finance group. Josh holds a BSc from Yeshiva University in Business Management.
