Client reporting for wealth management brands : Exceeding Client Expectations
Client ReportingExceeding expectations for a brighter futureSome thoughts from Kurtosys
WealthManagementA perfect storm of market forces = A new era in client reportingMarginSqueezeTech.advancesRegulationEmergingmarketsNeed torestoreinvestorconfidenceDrivers:Fin. Crisis / Madoff /Eurozone uncertaintyImperatives:Better understandingof riskAnalysis toolsInc. transparencyEnablers:Adv. Data analyticsMulti-channelapproachDrivers:Growth of mobileCloud computingUser ExperienceImperatives:Real time comms.Intuitive reportingInteractive toolsEnablers:Scalable cloud basedplatforms with mobilecapabilityDrivers:Basel II / Dodd-Frank / RDRImperatives:Agile reporting abilities, ability tooffset higher compliance costs.Enablers: Better data mgt.Drivers:Shift of wealth to the EastGrowing asset classImperatives:Heavier infrastructure needsEnablers: A global solutionDrivers:Mkt. Volatility / shift to ETF &passive investments / fee pressureEnablers: < total cost of ownership
Ernst & YoungCurrently, Advisors losean estimated 49% ofAUM during generationalwealth transfer.World Wealth Report, 2011In Asia-Pacific, exc. Japan, 41% of HNWIs are < 45 yrs oldThe proportion of wealth controlled by females is risingEmerging demographics mayhave different needs tolong-standing HNW clients.To serve a new era of web-savvy clients, whose expectations are high
Rapid changes in HNWI’s needs are driven by geography & technologyThe population of HNWIs in Asia-Pacific (3.3m individuals) is the 2ndlargest in the world – beating Europe for 1st time in 2011India’s HNWI population entered top 12 for the 1st timeClients in BRIC countries are tech savvy and internet enabled“Firms could lose AUM if they fail to meet theneeds of emerging HNWI Demographics”Source: World Wealth Report, 2011
Although revenues have bounced back well from the financial crisis,rising costs and market volatility means that overall profits are flat.Operational efficiency has now become vital for success.
Reporting is an opportunity to differentiate & exceed expectationsErnst & YoungEnhanced client reporting can..Attract &retain AUMMakecompliance adifferentiatorReduceoperationalcostsProviding an opportunity to meet a genuine client needwhilst also directly improving profitability & efficiency.“Other than the relationshipmanager, investmentreporting is often the only“relevant” touch point withclients.”Urs Tanner, CEO, Assentis
Historically, the investment has been there....Banks spend ahigher % oftotal costs on ITthan all othermajorindustries
But IT spend hasn’t translated into better performance....Resulting in a productivity paradoxWhich may bedriven by the lower% of purchasedsoftware vs. spendon in-housesoftwaredevelopment
ClientReportsWhich aremore....TransparentInteractiveFlexibleEffectiveBeautifulSalesInvestmentManagementOngoingsalesDay-to-day account managementGreater focus on:Retaining AUMExcellent customer service /CRMIn response to higher & higher clientexpectations....Firms MUST have clear differentiatorsto attract & retain AUMImproved AssetAllocationResearchProd.Mgt.Source: KurtosysAn evolving model for wealth management,places greater emphasis on client reporting:
Investors genuinely value client servicingClient serviceis the singlemostimportantdriver ofinvestorsatisfaction
Ernst & Young“The future promises significantchanges that will boost clientreporting to a new level, offeringreal-time access, customization,integration, interactivity andcontrol.”State StreetSource: IBM: Next Generation Wealth Managememt White PaperMaking it a key selection criteria for new clients
Importance to customersIncomeExpensesBusinessReducedOperational riskReduced KeyPerson RiskMarketResponsivenessFaster reportingAccuracyOperationalefficiencyReduced IT SpendEfficient use of staffStraight-throughprocessingSingle viewof fundperformanceHigher retention %Enhanced client reporting aligns customer service, ROI & AUMSource: Kurtosys
Ernst & Young“A growing number of wealth managersare looking to the support and resourcesof experienced external providers.Often, these partners hold the key todelivering the world-class service theultra-affluent market expects.”State StreetEvaluate: References Credentials Client list Level of support Cost Global capabilityWhich increasingly means partnering with an external providerAnd remember tolook at the totalpackage... You areNOT buying “just”an application...
Ernst & Young“80% of firms haveinvested in technology tosupport client reporting.” Build reliable reports rapidly Pull accurate data from multiple sources Show clients, at a glance, how their portfolios are performing Tailor information to individual needs Perform what-if analysis Deliver real time, any time information over the web Offer a rich & dynamic user experience
Please contact Simon RoseTelephone +44(0)20 8605 9770Email firstname.lastname@example.orgTo find out more abouttransforming YOUR client reports
About UsKurtosys provides digital marketing & reporting tools to help fundmanagers attract and retain investor assets.Since 2002, our team of industry experts have been using digital mediato transform the way that financial information is shared andconsumed.Our solutions help brands connect with their customers using thepower of online and mobile communications. Our robust infrastructureand outsourcing services help eliminate unnecessary workflows andreduce costs, and our web and document design services are dedicatedto making financial data beautiful.Headquartered in London, Kurtosys has offices in New York, SanFrancisco, Cape Town, Gurgaon (India) and Manila.Our presence spans five continents and our clients include some of theworld’s largest asset managers.
Cognizant, Asset Management: Reinventing Reporting For the New Era of Transparency andCompliancehttp://www.cognizant.com/InsightsWhitepapers/Asset-Management-Reinventing-Reporting-for-the-New-Era-of-Transparency-and-Compliance.pdfErnst & Yound, Wealth Management Study, 2011: Investing in the futurehttp://www.ey.com/US/en/Industries/Financial-Services/Asset-Management/2011-wealth-management-study---investing-in-the-future---Technology-people-and-processesHubbis: Making client reporting a key differentiatorhttp://www.hubbis.com/articles.php?aid=1325819880State Street:http://www.statestreet.com/wps/portal/internet/corporate/home/aboutstatestreet/newsmedia/newsarticles/newsarticledetail/!ut/p/c4/fY7NasJAGEWfZlZZzJcfk7E7C1pqrVpF0GyG-fmSDCYTmZmqfftG6qJIKXdxLxy4HFrSIVacTS2C6a1o6Z6WOV_uNsCe4wmw9QvA6xuD2ehjlsJ7TA-0LH7x1YoNPJlu4_kuAcjpnJZ128vh6UAPTQinJwIEFig0Or_EiydAy1vziQtGtej5WoSG7glcVNcaybtj4MYGdBYDV_2wbCCg-q7rLQG83ohoIzt8RF4Q8L7-GWOZgc4AsnGKMapYIMuqKkskS6BIU_2f0fSK6jOYM_I7-MvKN8KhfnSKeqeNFe4ruoPIm4AEpOlrJ06NwbteXmSjdNDLNYsRUCZKVQWTTOgxskLRLVq-29LTcdOeF9XkG7KLbrk!/World Wealth Report 2011, Capgemini & Merrill Lynch Wealth ManagementInformation sources
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