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Platform harmonization in wealth management

Focusing on the four drivers of business benefit

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The past decade has witnessed rapid transformation, growth and consolidation in the Canadian wealth management industry. The top financial institutions have grown significantly in size, either through M&A activity or organic growth fuelled by constantly evolving products and channels, as well as the growing affluence and sophistication of their clientele.

The wealth management divisions of these firms have also grown in size and complexity. These divisions comprise, in turn, multiple business lines (e.g., brokerage, private client, investment counsel), often each with its own set of processes and technology, frequently offering similar services to the same pool of potential clients (see Figure 1).

EY - Figure 1. Wealth management lines of business within the same firm often use different systems to perform the same function

Supporting the requirements of these business lines is an increasingly disjointed mosaic of applications and databases tied together with different types of interfaces, data feeds and services which are added to the mix as required. Currently, each business line is responsible for selecting the systems it requires, creating a situation where the firm as a whole is supporting many duplicate or overlapping systems.

Supporting the requirements of these business lines is an increasingly disjointed mosaic of applications and databases tied together with different types of interfaces, data feeds and services which are added to the mix as required. Currently, each business line is responsible for selecting the systems it requires, creating a situation where the firm as a whole is supporting many duplicate or overlapping systems.

Consolidating these systems where possible, both within and across business lines, represents an opportunity for financial institutions to realize significant long-term benefits through cost savings, increased efficiency and enhanced data access, as well as removing barriers to strategic enablement.

What are the key factors that are driving firms towards a platform harmonization strategy, and how can EY help both IT and your business stakeholders build a business case for implementing such an initiative?

Download Platform harmonization in wealth management - Focusing on the four drivers of business benefit to learn more and discover the four key drivers for undertaking a platform harmonization program.

 

EY - Figure 1. Wealth management lines of business within the same firm often use different systems to perform the same function×