"With the competitive changing panorama for private banks, it has become increasingly crucial that these institutions boast a stellar supporting technology backbone," comments Li-May Chew, CFA, senior research manager for Financial Insights Asia/Pacific Financial Advisory Service. "The key vendors which we explored in this report include ERI, Odyssey Financial Technologies, SS&C Technologies, SunGard, and Temenos. Topics covered include vendors' solution architectures, notable functionalities, selected references, on-ground presence, as well as Financial Insights' opinion of them. "
Li-May points out that "no two vendors appear to be competing head-on within the same space, with the same breadth of solution, or depth of offerings. Odyssey for instance, excels within the front- and middle- office offerings, while SS&C Technologies provides particular focus on clients' middle-office asset valuations and accounting requirements."
On how private banks should narrow down their search for the most appropriate solution provider, Financial Insights believes that the selection of a private banking system goes beyond merely buying packaged software with a static set of functions. Banks should take several factors into consideration. For instance, vendor offerings should correlate with the their commercial strategies; banks must consider the vendors' current and future fit with their existing platform and operating system; banks should seek vendors who are at the forefront of innovation and that have business models with high R&D components; and, preferably, vendors who utilize a system that incorporates a healthy balance of customizable components with past experiences and best practices.
Meanwhile, on the vendor's end, they are advised to implement solutions focused on customer analytics and relationship management; explore Web interfaces to support wealth managers in their proficiency and service execution; keep a close watch on clients' portfolio and risk management requirements; and offer performance and profitability management matrices that provide multi-dimensional analysis at the intersection of customer, product, and channel; which can help identify profit generators and constraints.