Crucial Questions Every Wealth Business Should Ask When Defining its Growth Strategy

Transcription

1 4 Crucial Questions Every Wealth Business Should Ask When Defining its Growth Strategy

2 Nearly half of financial firms say their current technology isn t strong enough to support their growth plans 1. That s an alarming statistic. With a multitude of other business challenges to overcome in the wealth industry, technology should not be the main obstacle; it should be an enabler. Thankfully, there are options to help your wealth business achieve its growth targets. Imagine specific tasks and functions handled for you, freeing you from managing a resource-intensive infrastructure and empowering you to shift your focus toward delivering lasting value to clients in today s highly competitive buyer s wealth market. This is the business process outsourcing (BPO) service model. Wealth managers are now turning to outsourcing processspecific capabilities across the middle and back offices to help them drive innovation and achieve better outcomes for their businesses. It s giving them a flexible, scalable way to improve operational efficiency, agility and, most importantly, their bottom line. And it could help you do the same. But, considering a BPO strategy for your business requires some assessment. Here are four crucial questions you should ask when defining a growth strategy for your wealth business. 1 FIS Readiness Report 2017 The Hunt for Growth Across Asset Management 2

3 1 What are the gaps between our firm s growth strategy and our ability to deliver? Do you want to vigorously pursue a new line of business but lack the operational expertise to support the initiative? Are you hesitant to add the staff required to ramp up the business? Are you focused on growing organically, through acquisition, or both? Do you wish you could dedicate more time providing a rich client experience to capitalize on the great wealth transfer? Many times, your choices of growth strategy are limited by your ability to support the initiatives operationally. This obstacle can be eliminated by working with an experienced vendor familiar with all aspects of outsourcing, who can deliver the subject matter experts you need on a variable basis to: Design a future, consolidated end-state based on best practices. Develop and scale up operations quickly. Easily adjust to market changes. Leverage temporary resources to ease the consolidation of disparate operations. Think creatively by considering alternative sourcing options, and work with a partner who can uncover capabilities that support many different growth tactics, and allow you to focus on client acquisition and servicing. 3

4 2 What processes do not add value or allow us to differentiate the client experience? Assessing your middle- and back-office operational model will help you determine which activities provide unique value to your customers and which do not. You may be best served to engage with a partner who can handle entire client and transactional life cycles, while helping you to identify: Tasks that do not allow for differentiation or premiumpriced offerings Activities that are not adding value and personalization to the client experience Opportunities to reduce cost, increase scale, remove key person risk and mitigate operational risk Many common operational tasks and business processes can be delivered easily by a third party with the expertise and the technology to support the task. Select a provider with a proven track record of helping financial institutions like yours transform their service models. You may be surprised by how right sizing your operations can help your firm improve the client experience, shift to a more predictable cost model, and enable you to focus on growing the business. 4

5 3 You know that providing exceptional customer service is a key differentiator. However, increasing regulations, operating costs and back-office requirements that are draining your resources continue to make this difficult to achieve. Consider migrating both selective core and non-core operations to trusted third-party vendors to help you: Control regulatory, security and other risks. How can I reduce the cost and risk to my operations and new business requirements? Implement technology solutions. Optimize system uptime. Ensure reliable, auditable processing. Utilize internal resources more strategically. With a growing emphasis placed on managing regulatory risk among firms in the wealth or retirement space, a thirdparty specialist can offer the security, scalability, global expertise, technology and local presence to help you reduce complexity, minimize operation and regulatory risk, and focus on increasing profitability. 5

6 4 How can I best align our resources to meet fluctuating market conditions and demand? Do you struggle with navigating market fluctuations? Or juggling resources between maintaining an existing infrastructure for day-to-day operations versus planning for the future? Unless your firm is large enough to deploy interchangeable resources that can be moved between functional areas, you should be exploring opportunities to better support relationship management efforts, growth strategies and mitigate key person risk. Outsourcing some or all of your middle- and backoffice business processes is a great way to shift focus to business activities that tend to have dynamic or unpredictable volumes or costs. Many firms like yours are looking to outsource processes that lack scale, are subject to key person risk, or do not deliver a competitive advantage. The right partner should be able to provide flexible technology deployment options, a variable pricing model and the staff you need to meet market demands. 6

7 Accelerate Your Growth with BPO The wealth management industry is evolving faster than many organizations are prepared to handle. If you re one of the 47 percent of wealth managers who believe their operations cannot support their planned growth 2, there is a bright side. Whatever your institution s growth strategies, the variable expertise offered by a BPO partner can help you realize topline benefits while avoiding the fixed expenses that can drain your resources. Outsourcing ultimately provides you with flexible, scalable models that meet your current and future business needs and growth empowering your firm to capture larger shares of the market. Join the ranks of the fast-growing companies who have already moved past the need to do everything in-house, particularly managing operations that do not differentiate or add direct value to clients. With the BPO model, you ll have a solid foundation to run operations efficiently, giving you the time and space you need to explore emerging technologies and strategic ways to differentiate the customer experience all key components to run, connect and grow a successful wealth management practice. 2 FIS Readiness Report 2017 The Hunt for Growth Across Asset Management 7

8 About FIS FIS is a global leader in financial services technology, with a focus on retail and institutional banking, payments, asset and wealth management, risk and compliance, consulting, and outsourcing solutions. Through the depth and breadth of our solutions portfolio, global capabilities and domain expertise, FIS serves more than 20,000 clients in over 130 countries. Headquartered in Jacksonville, Fla., FIS employs more than 53,000 people worldwide and holds leadership positions in payment processing, financial software and banking solutions. Providing software, services and outsourcing of the technology that empowers the financial world, FIS is a Fortune 500 company and is a member of Standard & Poor s 500 Index. For more information about FIS, visit Let s have a conversation CONTACT US TODAY BY VISITING FISGLOBAL.COM OR ING GETINFO@FISGLOBAL.COM. fisglobal.com getinfo@fisglobal.com 2018 FIS and/or its subsidiaries. All Rights Reserved