Peter Scott, general manager, Asia Pacific, Avaloq, discusses challenges facing private banking and wealth management businesses in the region as they seek to expand their portfolios.
January 27, 2014 | Neeti Aggarwal
Private banking and wealth management businesses looking to expand their respective portfolios in Asia face several challenges today - increasing competition, more demanding clients and stricter regulatory pressures. As this market matures, customers demand more sophisticated products from financial institutions. As a result, these institutions are increasingly looking to leverage on the latest advancement in financial technology to boost operational efficiency and successfully capitalise on new opportunities for sustainable growth.
Speaking on wealth management space, Scott felt consolidation is inevitable in the near future, “Institutions with assets of less than $10 billion in the wealth management business will find cost to income pressure a big challenge. Either these institutions will need to invest in technology to improve their processes and asset base, or consolidate as businesses. Globally, smaller financial institutions will likely exit the market or sell to others. I expect to see more wealth management consolidations in 2014.”
Wealth management institutions are being forced to invest in technological solutions that can empower relationship managers with better advisory capabilities and sustainable and targeted relationships. Often institutions begin with developing the relationship management capability at the front-end first, and then integrate it at the back-end.
“The three key areas where banks are investing in technology today are, firstly, towards transformation programme for their back offices to be compliant with regulatory requirements. Secondly, we are seeing banks invest in digital channels to engage with their customers and provide more sophisticated interactions. Thirdly, the focus is on relationship management. Banks need better tools to more effectively develop business with their customers, through provision of targeted and relevant investment proposals,” Scott pointed out.
Banks need solutions t...
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, Retail Banking
, Technology & Operations
, Wealth Management
Keywords: Peter Scott
, Avaloq Banking Suite
, ABC HK