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.

Advent Software Introduces Major Release of Its Platform for Asset and Wealth Management Firms Worldwide

Press Release Copyright: Advent Software, Inc.

What do you think?  Is this the path to the future?

Contributing author: Craig Cook, President

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.

Stay tuned.

Contributing author: Craig Cook, President

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.

We call this concept “application neutrality”.

Contributor: Craig Cook, President

This article posted by Private Wealth outlines responses to the new rules, and provides insights into the likely responses to these changes: http://www.fa-mag.com/pw-mag/pw-news/9405-family-offices-seek-to-shield-rich-clients-from-sec-disclosure.html

One response noted in this article – eliminating internal investment functions in favor of an outsourced investment model – would further a recent trend, albeit for different reasons. From a purely economic point of view, an administration only single-family office (SFO) business model could face mounting cost pressures to rationalize an independent, stand-alone operation handling the remaining back-office, concierge, and infrastructure of the SFO. We suspect more SFOs will begin to seek partnering solutions that will provide greater scale benefits in these functions yet allow a level of customization they need to serve the family clients’ unique requirements.

Family offices should also consider the role a private trust company could play in avoiding SEC registration requirements and the corresponding disclosure of assets and other private business information. Depending on the size and service model of the family office, a private, state-chartered trust company can confer a broad range of benefits beyond exemption from SEC oversight. So, maybe for some family offices it’s time to dust off that trust company idea and take a closer look.

We also note the impact on single family offices in the early stages of making a transition to a multi-family office (MFO) business model or MFOs which have heretofore operated under the 15-client threshold. With the additional cost and management burden of registration, smaller MFOs will need to grow quickly to overcome this drag on their financials.

Contributing author: Steve Randolph, Managing Partner

First time consultants can feel a sense of relief in dealing solely with the tasks at hand, staying above the politics existing within all organizations. Consulting opportunities have been on the rise in the financial services industry and although they may come with level of anxiety questioning “what’s next”, they may also be the positive change you’ve been looking for! Even a short-term engagement can lead to a longer-term opportunity.

Could it be time to consider a consulting opportunity on your path to success?

Contributing author: Tim Buhler, Senior Relationship Manager

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.

Contributing author: Craig Cook, President

http://www.wallstreetandtech.com/data-management/231901514

A couple of observations:

-  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.

Contributing author: Craig Cook, President

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

The amount of software and functionality being delivered via the web is continuing to change the client expectations. Here are just a few examples that are industry changers:

-          Mobile applications

-          BPM (Business Process Management)

-          Social Media

Just the thought of taking existing legacy applications, developing strategies, building tactical plans, and implementing any of the above seems like a daunting task. But that is exactly what may be expected going forward. Unless the legacy data can be made available and integrated with the new software paradigm, the positive impacts to the business and clients will remain elusive. At Oakbrook, we are committed to supporting our clients efforts to embrace and leverage new software via successful integration efforts.

Contributing author: Craig Cook, President

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