SunGard Identifies Ten Trends for 2010 in Wealth Management

Lombard, IL - 22 March 2010

Blaine Maxfield, chief operating officer of SunGard’s wealth management business, said, “Firms are focused on adapting and evolving their business models to meet the changing needs of their clients, as well as effectively aligning their internal operations to improve efficiencies and workflows throughout the organization. As a result, firms will continue to emphasize asset growth strategies, while reducing costs through advisor productivity and self-service technologies. Increased communication with investors will also help wealth managers to increase transparency and solidify their role as a trusted advisor.”

SunGard’s ten trends shaping wealth management in 2010 are:

1. More investors are seeking advice as economic conditions remain uncertain.

2. Service will persist as a key differentiator for advisors to attract and retain clients.

3. Automation will remain critical to profitability, productivity and the ability of firms to serve clients as a trusted advisor.

4. Increased client communication and online self-service tools will help strengthen relationships between the network of investors and their advisors.

5. Firms will require data aggregation and systems integration for efficiency and growth.

6. Regulatory requirements and demands for transparency will drive the need for firms to monitor risk at both the client and corporate levels.

7. A shift to open architecture and Software-as-Service* (SaaS) solutions will help firms increase transparency and accelerate time-to-market.

8. Selective outsourcing will become an attractive alternative for firms looking to reduce costs and maintain or increase service levels.

9. Trading, retirement and financial planning needs will continue to grow globally, particularly in emerging markets such as India and China.

10. Establishing the right mix of services, products, client segments and technology will help define the leaders in wealth management.

Alois Pirker, research director at Aite Group, said, “Technology is the enabler of both transparency and efficiency, but needs to be approached in an integrated fashion across the various systems available in a firm. Increasing the efficiency of systems entails the advisor’s front-office platforms that integrate various functions in one desktop, ranging from asset allocation to financial planning, to portfolio management.”

Craig Gordon, director of correspondent and advisor services for RBC Wealth Management, said, “In this new regulatory environment, where transparency is being mandated, it is important for financial advisors to have technology to help them work efficiently. There's never been a better time than now for integrated technology to help advisors collectively maintain client relationships, understand specific goals and objectives of clients, and efficiently monitor activity across a large book of business.”

Ray Hand, chief execution and innovation officer for BB&T's Wealth Division, said, “Transparency helps us to define what and how we deliver fiduciary-based, discretionary managed portfolios to our affluent clients. BB&T's client service has benefited from transparency by driving us to use a platform that helps us establish a deeper and broader level of discussion with our clients. We’ve also enhanced our back-office operations to be much more effective and efficient, giving advisors more time to spend with their clients.”

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