Changing Industry 

Wealth and investment management institutions are faced with industry wide structural changes that are defining new realities. The challenge of rebuilding trust among clients universally emphasizes 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.

Change of this magnitude can be painful if not handled correctly. Financial institutions must take a quantum leap forward with three key goals:

  • Adjust to the changing environment
  • Cut costs by capturing emerging opportunities
  • Drive innovation by reinvesting in the design and delivery of new products and services that clients want

How can they do this? By partnering with Capco—professional change agents who will lead them through it. Our wealth and investment management (WIM) team consists of specialists who understand global as well as local needs and trends, and who deliver practical IT and operational solutions.

 

Positioning for growth

Post the 2008 crisis, wealth and investment management institutions are faced with industry-wide 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 advisors/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


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