In reviewing Advent’s latest software release, it appears that the product gives us a glimpse of things to come. Cloud computing, workflow enablement, management dashboarding, etc.
However, for a legacy Advent Axys client, installing this product could be like drinking from a fire hose. That said, the functionality being delivered is most definitely needed to compete in the wealth management industry today.
The SEC is considering requiring that money market funds be priced daily and not fixed at $1.00.
What does this mean to the trust and securities industry? Plenty.
Most legacy applications that support money market funds processing are hardwired with the assumption that these funds will always be priced at $1.00. Some things to consider: client statements, cash projections and sweep processing, and dividend and interest payments.
The end game potentially is that money market funds require processing just like a mutual fund which could increase their overall cost of operation.
When clients hear the word CRM (Customer Relationship Management) they cringe. The term (which started in banking as CIF), has come to be associated with overblown expectations, more administrative work, and oversight by management who may lack an understanding of the CRM system itself. This has translated into an overall bad reputation for CRM vendors and applications.
But this is changing.
Clients and advisors now realize to appropriately nurture and grow relationships, the functionality that CRM’s bring to bear is valuable. CRM systems are now integrated in better ways with MS Outlook, easier to use, are web enabled, and some even include mobile capabilities. All this translates into CRM systems entering a “golden age” where all wealth managers and advisors migrate to a CRM system that realize the dream envisioned many years ago.
One word of caution – as CRM systems proliferate don’t think that the data found in the CRM will solve all of your data problems. Many CRM vendors are going beyond CRM data to try and facilitate other business functions – be wary of that.
CRM is a place where significant technology gains and changes may be realized. You want to be in a position to change CRM applications if new technology arrives. If you implement other functions beyond CRM within the CRM application, you can potentially lock yourself into an application that you wish to change in the future. Focusing on the functionality and capabilities of the CRM application itself will provide you with the best opportunity to adapt when new technology arrives.
Well, it appears the federal regulators and the financial industry continue to underperform, MF Global being the latest example. Whatever regulations have been in place are not working (again). How many times will this have to happen?
It is going to take is some real tactical work to get done at the data level to create the transparency needed to monitor these firms. Although regulators will tell you they can monitor these firms effectively, it is impossible until an application and data project is executed to mine, store, and report this data to appropriate staff in order to monitor the firms.
Instead of spending money on more people to write regulations, let’s execute a project to collect the data and use our good old American technology “know-how” to solve the problem.
- Looks like the tablet – mobile market is expanding and other parties are coming in. This means more and more applications will be appearing. Will the iPad be able to maintain its hold or will the market space finally be challenged with other tablet alternatives?
- This means that another round of development (Android based) will be required soon. Just building for the iPad and iPhone will not be good enough. Developers that offer technology solutions on a platform neutral basis will begin to thrive.
As Oakbrook Solutions engages in integration or system interface related projects we continue to run into the same “green screens” on client site. Although some areas have created front ends to mask the underlying technology, major changes are sometimes needed in integration or interfacing work that is done behind the scenes. The need for resources with skills around “old” technology is ever apparent but is it time for financial institutions to consider major shifts in technology platforms?
We all know the ROI on the change could be difficult to justify but the benefits of the move could be realized over time. As the US workforce ages, so does our clients ability to replace “hands-on” experience. As a niche consulting firm, Oakbrook Solutions understands the value of this type of knowledge and experience. That said, migrating to new technology can be accomplished with the right leadership, focus, and execution.
Is it time to begin the migration?
Contributing author: Tim Buhler, Senior Relationship Manager
Our industry has been through several significantly challenging times recently with market swings and volatility. Is it over?
Given recent events related to natural disasters and the potential downgrading of US Treasuries by Moody’s, it may not be over. A better assessment may be that this is life, as we know it for the foreseeable future.
What does that mean to Wealth Management technology leaders? It means that the ability to continue to operate effectively with large market events may separate the ultimate winners from the ultimate losers in our industry. The larger the firm, the bigger the challenge to support large market events. If an unpredictable event happens – how will you react? The wrong reaction (or lack of one) could mean the firm will suffer significant financial exposure.
So, what is a firm to do? Here is a great place to start:
Increase visibility
How many senior managers really know how many transactions, trades, or processing events happen daily, weekly or monthly? Not many.
If asked by executive management what would happen if “X” happened, most could not even tell what happens daily, weekly, or monthly. The data and tools exist to increase this information flow to management – it should be budgeted for, the project executed, and the information provided.
Scenario Modeling
Once a baseline of daily activity is determined, do some “war room” like modeling to socialize what could happen. What if the investment management group decided to do a massive move from equities to foreign bonds? What if a mutual fund company was found to have some financial problems? What if US treasuries are downgraded? What volumes of transactions can your operations and technology infrastructure support? If volume concerns are identified, then do some volume testing to determine where limits are.
Action Plans
Based on lessons and socialization of scenarios build action plans that:
Correct any short comings of existing infrastructure
Build management tools to alert management of extraordinary or potential problems that could surface – try to be proactive, not reactive.
Determine key, trusted individuals that would be consulted during a market event and form a critical event team that meets periodically with specific defined roles. When the event happens, use that team structure and organization to have your responses to management ready before they ask for them. The most important thing this shows – leadership!
The ability to incorporate these key ideas into action plans may be the first step in keeping a firm one-step ahead when our industry is challenged with these unpredictable events.
Be prepared for life…as we know it.
Contributing author: Craig Cook, President Oakbrook Solutions
May 15, 2012
0 Comments