2012 Americas wealth management study
Application sourcing and IT organizational models
As firms rely on technology to enable client and advisor strategies, getting the most from technology investments is more important than ever. Effective technology sourcing and smart IT organizational models are key ways to maximize the ROI of these investments.
Application sourcing models
Respondents reported a fairly clear distinction between how they use proprietary vs. packaged software tools.
Proprietary tools are dominant in client-related functions, compliance and regulatory reporting and enterprise data management. Packaged software is common for CRM, but it also has a strong presence in portfolio accounting and compliance and regulatory reporting.
Application service providers are well-established in trade order management, trade processing and portfolio accounting. Outsourcing is only in the very early stages of development.
No model appears to be a panacea in terms of effectiveness, and firms should weigh the benefits and limitations of each when making sourcing decisions. Also, as firms leverage a mix of these sourcing models, integration will be crucial to extracting the most value from IT investments.
IT organizational models
Larger firms are more likely to have a dedicated technology organization; smaller firms rely heavily on a shared service model.
Firms with a dedicated structure are far more likely to view their technology organization as effective compared to those relying on a shared service model (84% vs. 14%). This divide highlights a potential challenge for large firms considering shared service IT organizations to boost economies of scale.
Is your technology organization fully dedicated to the wealth management business, part of a larger organizational infrastructure or a hybrid structure?
On a scale of 1 to 5, with 5 highly effective and 1 not at all effective, how would you evaluate the effectiveness of this structure?×