Exploring client behaviours considering the consolidation of service providers

Using trusted partners enables to provide depth and breadth in terms of value for the organisation. 

Covid has accelerated the need for Asset & Wealth Managers to change from traditional ways of working and embrace the agile environment.  With new disruptive technologies gaining market share from traditional platforms in the industry, our Team at APS take a closer look at the some of those changes:

Consolidation

Clients behaviours have now changed requiring a more digital efficient and bespoke experience, which in turn means that organisations need to change and review / consolidate dated heritage IT estates and poor performing platforms. This digital context together with the strong focus on Environmental, Social and Governance (ESG) and the desire for responsible investing which is set to impact the advice, operational and technology processes drives Asset & Wealth Managers need to expand their offerings.  Organisations need to seek diversified returns for customers and gaining greater control within the distribution chain and in turn driving much closer proximity to the customer.

Asset & Wealth Managers must focus on improving efficiency and should be looking at their current supply and service chains.  These chains have grown through organic growth or through Mergers and Acquisitions over a number of years where business have not focused on the need for transforming.  It is now critical to review existing operating models to support transformation, including the consolidation of suppliers to build a long term relationship for the journey ahead to implement technology solutions that will providing cutting edge differentiators, whilst providing greater flexibility and value.

Outsourcing and operational resilience

Asset & Wealth Managers in the past are increasingly depended on third party providers and outsourcers to provide services. As of the 1^st April 2022 and before 31^st March 2025 organisations are mandated to effectively manage and meet the regulations set out by the FCAs Operational Resilience Framework to reduce the risk of operational disruption and harm to their consumers. (Meet the regulations as set out by the FCA’s Operational Resilience Framework and reduce the risk of operational disruption and subsequent harm to their customers)

The FCA expect organisations to be operationally resilient by having a comprehensive understanding and mapping of the people, processes, technology, facilities and information necessary to deliver each of their important business services. This includes dependencies such as (reliance on) third parties (who are inherent in delivering services and support)

Asset & Wealth Managers must assess the risks and controls in place to ensure they are operationally resilient.

Solutions

At APS we have a number of solutions and partnerships that can:

• provide an automated solution designed with and for organisations with highly complex hybrid environments. These products/systems can visualize your entire estate (from on-premises to SaaS to the cloud) and allow you to make data-driven decisions.
• provide advanced technology and operations, communications, data and analytics solutions to support your transformation journey.

APS have also shaped and reviewed Operating Models for FTSE 100 Asset Managers (for mergers, demergers and general reviews), providing recommendations and consolidation of services.

(All of this is designed to provide the new customer experience being demanded as business starts to return to a ‘new normal’)