Wealth managers have different priorities on technology, Aite Group finds
Private banks are adopting technology differently compared to wealth managers and international banks, a new report from Aite Group found.
A survey of 50 technology executives revealed that capability priorities of technology executives at financial firms that offer wealth management services and have knowledge of wealth management operations, differ from other business lines, as wealth management businesses are adopting specific technology.
Online brokerage firms, for example, have been slow to adopt outside technology, something that will have to change if they are to truly engage retail traders, according to Aite Group.
“Under today’s adverse market conditions, the list of technology requirements—such as tablet and big-data solutions—is growing much faster than are the budgets necessary to fund such items,” the firm said.
In this scenario, senior technology officers are facing the task of choosing which essential technology projects will receive attention and which will be neglected. For some, the way out of this fix is to rely on competent outside specialists.
“There is a silver lining for CIOs and business unit managers facing limited IT resources,” said Javier Paz, senior analyst with Aite Group and author of the report.
He added: “Implementing outsourced technology, from business processes to specific technologies, is gaining popularity in the wealth management arena and can help cash-strapped firms afford the technologies they require.”
The 35-pages report can be found here.