Client ReportingExceeding expectations for a brighter future
Some thoughts from Kurtosys
Wealth Management
A perfect storm of market forces = A new era in client reporting
Margin Squeeze
Tech. advances
RegulationEmerging markets
Need to restore investor
confidence
Drivers:Fin. Crisis / Madoff / Eurozone uncertainty
Imperatives:Better understanding of riskAnalysis toolsInc. transparency
Enablers:Adv. Data analyticsMulti-channel approach
Drivers:Growth of mobileCloud computingUser Experience
Imperatives:Real time comms.Intuitive reportingInteractive tools
Enablers:Scalable cloud based platforms with mobile capability
Drivers:Basel II / Dodd-Frank / RDR
Imperatives:Agile reporting abilities, ability to offset higher compliance costs.Enablers: Better data mgt.
Drivers:Shift of wealth to the EastGrowing asset classImperatives:Heavier infrastructure needsEnablers: A global solution
Drivers:Mkt. Volatility / shift to ETF & passive investments / fee pressureEnablers: < total cost of ownership
Ernst & Young
Currently, Advisors lose an estimated 49% of AUM during generational wealth transfer.World Wealth Report, 2011
In Asia-Pacific, exc. Japan, 41% of HNWIs are < 45 yrs old
The proportion of wealth controlled by females is rising
Emerging demographics may have different needs to
long-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 & technology
The population of HNWIs in Asia-Pacific (3.3m individuals) is the 2nd largest in the world – beating Europe for 1st time in 2011
India’s HNWI population entered top 12 for the 1st time
Clients in BRIC countries are tech savvy and internet enabled
“Firms could lose AUM if they fail to meet the needs 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 expectations
Ernst & YoungEnhanced client reporting can..
Attract & retain AUM
Make compliance a differentiator
Reduce operational
costs
Providing an opportunity to meet a genuine client need whilst also directly improving profitability & efficiency.
“Other than the relationship manager, investment reporting is often the only “relevant” touch point with clients.”Urs Tanner, CEO, Assentis
Historically, the investment has been there....
Banks spend a higher % of
total costs on IT than all other
major industries
But IT spend hasn’t translated into better performance.... Resulting in a productivity paradox
Which may be driven by the lower
% of purchased software vs. spend
on in-house software
development
Client Reports
Which are more....
Transparent
Interactive
Flexible
Effective
Beautiful
SalesInvestment
ManagementOngoing
sales
Day-to-day account management
Greater focus on:
Retaining AUM
Excellent customer service /CRM
In response to higher & higher client
expectations....
Firms MUST have clear differentiators
to attract & retain AUM
Improved Asset
Allocation
Research Prod. Mgt.
Source: Kurtosys
An evolving model for wealth management, places greater emphasis on client reporting:
Investors genuinely value client servicing
Client service is the single
most important driver of investor
satisfaction
Ernst & Young
“The future promises significant changes that will boost client reporting to a new level, offering real-time access, customization, integration, interactivity and control.”State Street
Source: IBM: Next Generation Wealth Managememt White Paper
Making it a key selection criteria for new clients
Importance to customers
Income
Expenses
Business
Reduced Operational risk
Reduced Key Person Risk
Market Responsiveness
Faster reporting
Accuracy
Operational efficiency
Reduced IT Spend
Efficient use of staff
Straight-through processing
Single view of fund
performance
Higher retention %
Enhanced client reporting aligns customer service, ROI & AUM
Source: Kurtosys
Ernst & Young
“A growing number of wealth managers are looking to the support and resources of experienced external providers. Often, these partners hold the key to delivering the world-class service the ultra-affluent market expects.”State Street
Evaluate:
References
Credentials
Client list
Level of support
Cost
Global capability
Which increasingly means partnering with an external provider
And remember to look at the total package... You are NOT buying “just” an application...
Ernst & Young
“80% of firms have invested in technology to support 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 Rose Telephone +44(0)20 8605 9770 Email [email protected]
To find out more about transforming YOUR client reports
About UsKurtosys provides digital marketing & reporting tools to help fund managers attract and retain investor assets.
Since 2002, our team of industry experts have been using digital media to transform the way that financial information is shared and consumed.
Our solutions help brands connect with their customers using the power of online and mobile communications. Our robust infrastructure and outsourcing services help eliminate unnecessary workflows and reduce costs, and our web and document design services are dedicated to making financial data beautiful.
Headquartered in London, Kurtosys has offices in New York, San Francisco, Cape Town, Gurgaon (India) and Manila.
Our presence spans five continents and our clients include some of the world’s largest asset managers.
Cognizant, Asset Management: Reinventing Reporting For the New Era of Transparency and Compliance http://www.cognizant.com/InsightsWhitepapers/Asset-Management-Reinventing-Reporting-for-the-New-Era-of-Transparency-and-Compliance.pdf
Ernst & 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-processes
Hubbis: Making client reporting a key differentiatorhttp://www.hubbis.com/articles.php?aid=1325819880
State 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 Management
Information sources