Wealth & Investment Management

Winning with wealth and investment management businesses in an era of growth, structural change and complexity

Never before has the wealth and investment management industry been the focus of so much change. The industry faces structural changes that create opportunities for growth, cost reduction and consolidation. All the while, many wealth managers face the challenge of rebuilding trust among clients, universally emphasizing client experience. Convergence, regulatory compliance, globalization, cross-border banking and rapidly changing end-user demographic needs are also driving profound change across the wealth and investment management industry.

Positioning for growth
Post the 2008 crisis, wealth and investment management institutions are faced with industrywide structural changes that are defining the new normal. The factors shaping this new normal are driven by:

  • Shifting investment by banks away from capital markets to wealth and investment management businesses
  • Firms focusing on core competency
  • Rapid emergence of digital channels for client engagement
  • Investment advisers/managers striving to rebuild client trust
  • A rapidly evolving regulatory environment

In North America, these changes are providing wealth and investment management firms an opportunity to reposition for growth while aligning their business models to be cost efficient. In Europe, due to the high cost of global and local regulations, banks looking to maintain reasonable cost-income ratios have had to grow – often through acquisitions in Europe and Asia – to survive. According to a survey conducted by Capco earlier this year, almost 80 percent of European wealth management respondents identified regulatory change as the greatest threat to profitability. Coupled with margin pressures, banks responded by refocusing on profitability and pricing flexibility tailored to client segmentation, expansion into new international markets and operational cost transparency.

Understanding the challenges and recognizing the opportunities
Capco’s dedicated WIM team consists of seasoned wealth and investment practitioners with deep expertise. We understand where the sector has come from, where it is today, and its likely direction for tomorrow. In pursuit of client success, we apply fact-based thought leadership, specialist consulting capabilities and solutions that include tested, proven and successful proprietary templates, models and methodologies.

Throughout the WIM sector, we help clients:
  • Develop and execute business and technology strategies
  • Streamline operations
  • Build and implement new or enhanced operating models
  • Manage mergers, acquisitions or divestitures
  • More effectively manage multiple projects and integrate disparate data
  • Implement complex software packages to support core businesses
  • Effectively onboard clients

Wealth management
The wealth management sector faces numerous challenges, including substantial growth expectations, margin pressures, globalization and aging populations that demand focused solutions. Capco designs and delivers business and technology solutions to address these challenges. Our solutions include:

  • Financial adviser strategies – integrated strategies incorporating customer relationship management, suitability, portfolio management, pricing transparency and financial planning
     
  • Online, mobile and tablet strategy and integration – achieving a consistent multichannel client experience
     
  • Bank/brokerage convergence – product cross-sell and bundling approaches, and operating model synergies
     
  • Regulatory changes – applicability of tax regulations (FATCA), KYC (Know Your Client) and Dodd-Frank Title IX fiduciary responsibility
     
  • Advanced portfolio management and managed account solutions – Separately Managed Account (SMA) and Unified Managed Account (UMA) planning and architecture implementation
     
  • In-retirement offerings – product and service models that address the shifting requirements of the aging population away from wealth accumulation to wealth preservation, income management and wealth transfer
     

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