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Private Banking Software Solutions for Growth

Valuefy provides private banking software solutions to banks and wealth managers to help them automate their operations, provide personalized service to their clients, and grow their businesses. Our cloud-based platform offers a comprehensive suite of features, including portfolio management, risk management, client onboarding, and reporting.

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The New Normal in Wealth Management

The COVID-19 pandemic has had a profound impact on the wealth management industry. Many of the trends that were already underway, such as the rise of digitalization and the shift to personalized advice, have been accelerated.

In the new normal, wealth managers will need to focus on the following key areas:

Digitalization: Wealth managers need to embrace digital technology to improve the client experience and operational efficiency. This includes offering online and mobile access to accounts, as well as using artificial intelligence (AI) and machine learning to automate tasks and provide personalized insights.

Personalized advice: Wealth managers need to shift from a product-centric approach to a client-centric approach. This means providing clients with personalized advice that is tailored to their individual needs and goals.

Risk management: Wealth managers need to help clients manage their risks in a volatile and uncertain environment. This includes developing risk management strategies that are aligned with each client’s individual risk tolerance.

In addition to these key areas, wealth managers also need to be aware of the following trends:

The rise of the mass affluent: The mass affluent segment is growing rapidly, and wealth managers need to adapt their offerings to meet the needs of these clients.

The increasing diversity of clients: Wealth managers need to be prepared to serve a more diverse range of clients, including millennials, women, and immigrants.

The growing importance of ESG: Environmental, social, and governance (ESG) investing is becoming increasingly important to clients. Wealth managers need to be able to offer ESG investment solutions and help clients understand the impact of their investments.

How Valuefy can help wealth managers adapt to the new normal

Valuefy is a wealthtech platform that can help wealth managers adapt to the new normal in a number of ways. Valuefy’s platform can help wealth managers to:

Digitalize their operations: Valuefy offers a variety of digital tools and solutions that can help wealth managers to automate tasks, improve the client experience, and gain insights from their data.

Provide personalized advice: Valuefy’s platform can help wealth managers to develop personalized financial plans and investment portfolios for their clients. Valuefy also offers insights and recommendations that can help wealth managers to provide better advice to their clients.

Manage risk: Valuefy’s platform can help wealth managers to develop and implement risk management strategies that are aligned with each client’s individual risk tolerance.

Valuefy’s customers include wealth managers, asset managers, and private banks. To learn more about how Valuefy can help you adapt to the new normal in wealth management.

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Why Data Reconciliation is Indispensable to Wealth Managers

Accurate and reliable data is the backbone of effective wealth management. Effectively reconciling data ensures financial records are complete, consistent, and trustworthy.

Data reconciliation involves comparing and aligning data from various sources, including custodians, banks, brokers, and internal systems, to identify any discrepancies or inconsistencies. It’s a critical process that helps you maintain the integrity of your clients’ portfolios, track performance, assess risk exposure, and comply with regulatory requirements.

Let’s delve deeper into why data reconciliation is indispensable to wealth managers:

1. Accuracy and Reliability: Effective reconciliation ensures the accuracy and reliability of your data. By comparing different data sets, you can identify inconsistencies, such as missing or duplicated transactions, pricing errors, or incorrect position balances. Resolving these discrepancies promptly ensures that reports and analyses are sound and based on correct information.

2. Risk Mitigation: Effective risk management is a key aspect of wealth management. Proper data reconciliation allows you to identify and mitigate risks associated with inaccurate data, unauthorized trading, or fraudulent activities. It helps maintain a robust control environment by detecting anomalies and potential breaches promptly.

3. Compliance and Reporting: Regulatory bodies, such as financial authorities, impose strict reporting requirements on wealth managers. Data reconciliation ensures these obligations are met by providing accurate and complete information for regulatory filings. Failure to comply with these regulations can result in penalties, reputational damage, and potential legal consequences.

Now, let’s consider the adverse effects of improper data reconciliation:

1. Inaccurate Reporting: Without proper reconciliation, your reports may contain errors and inconsistencies. This can lead to incorrect valuation of portfolios, inaccurate performance calculations, and misguided investment decisions. Inaccurate reporting not only affects internal decision-making but also undermines the trust and confidence clients place in their wealth managers.

2. Operational Inefficiencies: Incomplete or inconsistent data can lead to operational inefficiencies. Without proper reconciliation, it may be challenging to  track transactions, identify cash flows, or reconcile trades. These inefficiencies can result in delays, increased operational costs, and suboptimal investment strategies.

3. Increased Risk Exposure: Inadequate data reconciliation increases the risk of unidentified errors, fraud, or unauthorized activities. Without a clear view of positions, transactions, and cash balances, wealth managers may inadvertently expose clients’ portfolios to risks that go undetected. This can have severe financial and reputational consequences for both advisors and clients.

4. Regulatory Non-Compliance: Improper reconciliation can also result in non-compliance with regulatory requirements. Failure to meet reporting obligations accurately and on time can result in penalties, regulatory scrutiny, and reputational damage. Non-compliance can also hinder an advisor’s ability to attract new clients and retain existing ones.

Wealth Tech Solutions

Modern technology solutions introduce various checks to reconcile the data from both a quality and quantity basis. Your chosen software must perform three types of reconciliations:

1. Holdings and transactions.

2. Reconcile cash accounts with cash flows.

3. Reconcile non unitised products where you need to pre-set percentage threshold and any deviation beyond the threshold should prompt a breach.

Apart from the system checks, software vendors also offer “Data as a Service” where professional data managers from the vendor’s office manage data for their clients for a fee.

Data reconciliation is a vital process for wealth managers. It ensures the accuracy and reliability of financial records, mitigates risks, facilitates compliance, and strengthens client relationships. Neglecting or mishandling this process can have severe repercussions, including inaccurate reporting, operational inefficiencies, increased risk exposure, and regulatory non-compliance.

About Valuefy

Valuefy is a premier investment technology lab with cutting-edge solutions serving leading financial institutions across the globe. Its Wealth Management Solutions has enabled Wealth Managers globally by providing production-grade investment technology solutions for an uberized customer experience.

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The Future of Wealth Management: How Valuefy's Wealth in a Box is Revolutionizing the Industry

The wealth management industry is undergoing a major transformation. As the world becomes increasingly digital, wealth managers are under pressure to find new ways to serve their clients.

One of the most promising trends in wealth management is the rise of cloud-based platforms. These platforms offer a number of advantages over traditional wealth management systems, including:

Ease of use: Cloud-based platforms are designed to be easy to use, even for non-technical users. This makes it easier for wealth managers to focus on providing high-quality service to their clients.

Scalability: Cloud-based platforms can be easily scaled to meet the needs of growing businesses. This means that wealth managers can start small and then scale up as their business grows.

Cost-effectiveness: Cloud-based platforms are typically more cost-effective than traditional wealth management systems. This is because cloud-based platforms are hosted on the cloud, which means that wealth managers do not have to invest in expensive hardware or software.

One of the leading cloud-based wealth management platforms is Valuefy's Wealth in a Box. Wealth in a Box is a comprehensive suite of tools that can help wealth managers to improve the performance of their portfolios and to provide better service to their clients.

Here are some of the ways that Valuefy's Wealth in a Box can help wealth managers:

Data aggregation: Wealth in a Box can connect to over 50 banks and brokers, and it can aggregate data from a variety of sources, including financial statements, market data, and client communications. This gives wealth managers a complete view of their clients' financial situation, which can help them to make better investment decisions.

Portfolio management: Wealth in a Box provides tools for asset allocation, rebalancing, and tax optimization. It also includes a risk engine that can help wealth managers to assess and manage the risk of their clients' portfolios. This can help wealth managers to protect their clients' assets and to achieve their financial goals.

Risk assessment: Wealth in a Box includes a risk engine that can help wealth managers to assess and manage the risk of their clients' portfolios. This is important because it can help wealth managers to avoid taking on too much risk and to protect their clients' assets.

Compliance: Wealth in a Box includes a compliance module that helps wealth managers to stay compliant with regulations. This is important because it can help wealth managers to avoid penalties and to protect their clients' interests.

Client engagement: Wealth in a Box includes a client portal that allows clients to access their portfolios and view their investment performance. This can help wealth managers to build stronger relationships with their clients and to provide them with better service.

In addition to these features, Valuefy's Wealth in a Box also offers a number of other benefits, including:

Real-time data: Wealth in a Box provides real-time data, which means that wealth managers can make decisions based on the latest information.

Automated workflows: Wealth in a Box can automate many of the tasks involved in wealth management, which frees up wealth managers to focus on more strategic activities.

Customization: Wealth in a Box can be customized to meet the specific needs of each wealth manager.

Valuefy's Wealth in a Box is a powerful tool that can help wealth managers to improve the performance of their portfolios and to provide better service to their clients. It is used by some of the leading wealth management firms in the world, and it is a leading solution for the future of wealth management.

To learn more about Valuefy's Wealth in a Box, please visit the following website:

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Enhancing Client Engagement and Business Growth with a Wealth Advisor Workbench

Wealth managers can leverage an advisor workbench solution to increase efficiency and productivity, improve the quality of their advice and client service, and act more quickly and effectively on high-quality data. This will help advisors engage more successfully with clients and serve their needs better, ultimately benefiting both advisors and their clients.

What is an Advisor Workbench?

An automated and modular advisor workbench provides an entire wealth technology solutions and business operating system for a wealth manager. It helps advisors drive enhanced client relationships by automating and simplifying the workflow across various stages of client servicing. It empowers wealth managers to seamlessly and easily perform tasks that span customer onboarding, transaction execution, data aggregation and internal and client reporting.

Benefits for Wealth Managers

By using an automated and modular client management system, wealth advisors can minimise manual administration, deliver intelligent insights, drive hyper-personalisation and offer premium client service. Automation driven by technology helps firms reduce cost, increase operational efficiency and compliance, and ultimately ensures relationship managers are more productive and impactful.

For example, an advisor workbench can help wealth managers aggregate data right from the outset and present clients with relevant insights about their portfolios. This results in greater client interest and faster engagement in the relationship manager’s proposition, and at a greater scale than might previously have been possible. Integrated modules for advisory, data aggregation, onboarding and analytics can drive deeper engagement and enable better client service at all touchpoints, which results in incremental business achieved at a lower cost.

This approach helps advisors serve clients effectively at a time of high cost and rising pressures on wealth management technology models. Rather than continuing with a traditional product-focused model, advisors can leverage wealth technology solutions to offer pricing flexibility to cater for client needs at every stage of the wealth management journey. Typically, clients pay a flat fee based on the value of their investments. To maintain revenues under this pricing model, wealth managers must create new efficiencies and ensure relationship managers are more productive and spending more time with clients.

What’s Holding Relationship Managers Back?

In reality, most relationship managers spend the bulk of their time on non-revenue-generating activities. This is a widespread problem given the use of inefficient legacy IT systems, or even spreadsheets, and the rising demands of regulation and compliance.

The major obstacles to reducing non-advisory time include fragmented technology solutions for the post-advisory period due to multiple systems for client data and analytics; a high degree of manual data processing for product-level paperwork and manual trade and system entries; no integrated research platform for recommendations across asset classes; and a lack of pre-advisory client risk analytics resulting in legal and compliance issues.

Unlocking the Power of an Advisor Workbench

Advisors can make use of an automated and modular advisor workbench to tackle these challenges. For example, they can enhance onboarding and transaction execution by digitising the know-your-customer (KYC) process and building a self-service model that allows clients to perform transactions and key investment activities. They can develop reporting and review functionality that provides wealth advisors and clients with ready access to information about valuations and recent transactions. They can also invest in developing systems for servicing, query resolution and communications that are based on predictive models and can flag up potential deficiencies. Similarly, they can develop systems that use communications and service history to enhance the client experience through greater personalisation of service offerings and investment recommendations.

Driving Client Engagement and Business Growth

Wealth advisors and their clients stand to benefit when key front-office, client-facing functions, such as onboarding, analytics, reporting and trading, are automated and delivered through an easy-to-use interface. This frees up time and resources, and generates intelligent insights, helping advisors drive enhanced client relationships, loyalty and lifetime value.

Technology, data and insights are key to the operating strategy of advisors. By deepening client engagement using an advisor workbench, wealth advisors and managers can offer an exceptional digital experience to their clients, deliver enhanced investment decision making based on high-quality data and analysis, and drive their firm’s differentiation and growth in the market.

For more information about Valuefy’s wealth management technology solutions please contact us.

Get in touch to arrange a meeting to explore these themes in more detail and discuss our insights in wealth management technology.

About Valuefy

Valuefy is a premier investment technology lab with cutting-edge solutions serving leading financial institutions across the globe. Its Wealth Management Solutions has enabled Wealth Managers globally by providing production-grade investment technology solutions for an uberized customer experience.

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How Wealth Advisors Can Manage Rising Costs, Digital Transformation and Client Expectations and Achieve Profitability and Growth

The wealth management landscape has shifted dramatically in recent years. Wealth managers are facing a new reality of rising costs, accelerating digital transformation and heightened client expectations for quality of service. But what do these challenges really mean for wealth advisors and how can they overcome them?

Rising Costs, Digital Transformation and Client Expectations

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A host of factors are disrupting how wealth advisors operate as they grapple with rising threats to their business model and greater costs of doing business. These challenges stem from multiple sources including increased account aggregation, greater passive investment, the decline of fee minimums, cost inflation across technology, salary and other expenses, and a global regulatory push towards transparency, suitability and lower fees.

As costs are rising, so are client expectations. Clients are seeking both, higher returns through alternative investments and sophisticated investment risk mitigation and diversification in a challenging and unpredictable world. They are also demanding a seamless, convenient and personalised client experience. Increasingly, they expect this to be delivered through a hybrid of in-person and virtual engagement, often across multiple jurisdictions and geographies. Additionally, environmental, social and governance (ESG) investing is firmly on the radar of most clients. They are frequently considering ESG factors alongside traditional financial metrics to invest in a sustainable and responsible way.

Consequently, wealth advisors are facing increased client expectations for high-quality service, broader product offerings and sophisticated investment advice at a time when business cost and complexity is rising.

Technology Drives Profitability and Growth

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Advisors are leveraging advanced technology to adapt their strategy and operations to this new reality. This can help them deliver the intuitive digital experience investors seek, provide a broad range of sophisticated products and services, and enhance the quality of investment advice. Crucially, it enables them to provide this improved offering while also enhancing operational efficiency and reducing cost.

For example, advisors are investing in enhanced data management to aggregate, standardise and harmonise data across multiple custodian, broker, currency and product data sets. This ensures data is available in the correct place and format for investment analysis, portfolio management, portfolio reporting and client service. They are enhancing the monitoring of portfolio insights, building holistic views of assets across portfolios, implementing advanced attribution and visualisation capabilities, and using open APIs for upward and downward integrations and to scale and expand. With the right technology, they can do all this while maintaining effective oversight, control and cost efficiency.

Achieving Business Results as Pressures Mount

In this challenging environment, the pressure is mounting for wealth managers to improve business performance and competitive advantage and deliver superior digital services and investment outcomes for clients. A technology-driven wealth management approach is crucial for wealth advisors to remain profitable and deliver sustained growth in a fast-changing market.

For more information about Valuefy’s wealth management technology solutions please contact us.

Get in touch to arrange a meeting to explore these themes in more detail and discuss our insights in wealth management technology.

About Valuefy

Valuefy is a premier investment technology lab with cutting-edge solutions serving leading financial institutions across the globe. Its Wealth Management Solutions has enabled Wealth Managers globally by providing production-grade investment technology solutions for an uberized customer experience.

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Wealth Management Technology Solutions Unlock Demand for Private Assets

Private asset management is an increasingly important part of asset allocation as investors look for new avenues to generate returns and diversify risk. But they present unique challenges for wealth managers with their illiquid nature, complex valuation methodologies and lack of standardised reporting.

Advanced technology can help wealth managers overcome these challenges and unlock new opportunities in alternative investments, ultimately benefiting both wealth managers and their clients.

Shifting Investor Landscape

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Investors are facing continued inflationary pressures, diversification challenges and public markets with low returns, fragile liquidity and a lack of listed growth companies. Increasingly, they’re turning to private markets to boost returns and enhance diversification. They are shifting allocations to a range of alternative investments including private equity, private debt, real estate, infrastructure, venture capital, growth capital and natural resources. These assets can also be readily customised to manage liability matching, access ESG and renewable energy investment themes, and target non-financial goals more broadly, including social impact investing.

As the trend for increased private asset allocations sweeps across the investment landscape, wealth managers are scrambling to expand their offerings in private markets. For wealth management advisors, catering to private asset demand is a crucial way to address the evolving needs of their clients. It also enables them to command typically higher fees and tap into an important source of growth and expansion.

With greater investment allocation to private assets, advisors must enhance their analysis and performance reporting of these asset classes to effectively meet the surge of demand and uncover the true value these investments can offer. Luckily, there are a number of ways advisors can leverage technology for this purpose.

Improved Investment Portfolio Management

Advanced technology can provide wealth managers with enhanced investment portfolio management capabilities for private assets. These include portfolio tracking and monitoring tools that enable wealth managers to effectively manage and analyse asset portfolios.

For example, wealth management advisors can leverage solutions to track and update the valuation of private assets in real-time, allowing for more accurate portfolio valuation and performance reporting. They can deploy comprehensive reporting features that allow them to generate customised reports for their clients and showcase the performance and risk characteristics of their alternative asset investments.

These new tools provide wealth managers with a holistic view of their clients’ private asset management portfolios. This can help enhance their investment recommendations and improve how they communicate performance to clients.

Advanced Data Management and Analysis

Wealth management advisors increasingly recognise the need for advanced technology to efficiently manage and analyse the vast amount of data associated with private assets. The asset class often features complex data sets, across financial statements, legal documents and market data, which need to be accurately collected, organised and analysed.

Wealth management technology solutions can automate these processes, reducing the time and effort required for data management and analysis. For example, artificial intelligence (AI) and machine learning algorithms can automatically extract relevant data from financial documents, standardise the data and store it in a centralised database.

This streamlined data management process allows wealth managers to easily access and analyse data, enabling them to gain insights and make informed investment decisions. It can unlock sophisticated data analytics capabilities, such as risk modelling, scenario analysis and performance attribution. This helps advisors better understand the risk and return characteristics of private asset management and optimise their clients’ portfolios accordingly.

Enhanced Risk Management

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With unique liquidity, market and regulatory risk characteristics, private assets often require specialised risk management approaches.

A robust asset management framework for private markets should encompass risk management and analysis, and the associated data requirements, for both top-down and bottom-up approaches. The former approach is most suitable for fund investments and the latter for co-investments and direct investments. Wealth managers can leverage advanced technology to develop superior risk management tools to support these approaches. They can perform risk modelling and simulations to assess the risk profile of their clients’ private asset portfolios, identify potential risk exposures and formulate mitigation solutions. In the case of direct investments, they can identify and analyse the most crucial risks and define risk monitoring indicators to track investment performance during the holding period.

Risk is often perceived to be higher in private markets compared to public markets and is assessed and managed differently. By leveraging technology solutions for risk management, advisors can mitigate risks associated with private assets and protect their clients’ investments as part of a sound, well-informed investment decision-making process.

Next Level Reporting and Transparency

Advanced technology solutions significantly improve the reporting and transparency of private assets. This is often a challenging area for wealth managers due to the lack of standardised reporting in private markets.

Wealth managers can automate and customise reporting features to generate detailed and transparent reports for their clients. Additionally, they can deploy tools for performance attribution, benchmarking and peer group analysis, and compare the performance of private assets against relevant benchmarks and industry peers. This enhanced reporting and transparency can foster trust and confidence between wealth managers and their clients.

Technology Harnesses Private Market Demand

As demand for private asset management continues to surge, wealth managers are racing to address and exploit this trend. Their efforts are crucial if they are to effectively cater for investors’ changing needs and future proof the growth of their own business.

Traditional technology solutions are not sufficient for wealth managers to reap the rewards of private markets and create value for their clients and their own businesses. They must harness advanced technology to better manage, analyse and report on alternative investments. This will enable advisors to deliver the benefits associated with private assets including higher returns, portfolio diversification and resilience throughout recession periods.

For more information about Valuefy’s wealth management technology solutions please contact us.

Get in touch to arrange a meeting to explore these themes in more detail and discuss our insights in wealth management technology.

About Valuefy

Valuefy is a premier investment technology lab with cutting-edge solutions serving leading financial institutions across the globe. Its Wealth Management Solutions has enabled Wealth Managers globally by providing production-grade investment technology solutions for an uberized customer experience.

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The Open API Opportunity for Wealth Managers and Family Offices

The open banking movement, and the use of open APIs, has the potential to revolutionise the way businesses operate in the wealth management industry. Wealth managers can leverage open APIs to unlock a myriad of opportunities. These include expanding their service offerings, streamlining operations and driving growth.

Advisors that become early adopters of open banking practices, and invest in the commercial opportunities of open APIs, will play an integral role in the future of wealth management technology.

Enhanced Connectivity

With wealth increasingly spread across multiple banking relationships, custodians and jurisdictions, enhanced connectivity is essential to success, for both advisors and their clients. Open APIs enable wealth managers to connect their systems with external platforms, such as banks, custodian data centres and other financial institutions, in a seamless and secure manner.

Enhanced connectivity allows for real-time data exchange, enabling wealth managers to access and analyse financial data more efficiently. For example, advisors can leverage open APIs to retrieve data on clients’ financial accounts, transactions and holdings directly from a custodian’s system, eliminating the need for manual data entry and reducing the risk of errors.

For wealth managers and family offices, tracking and controlling bankable assets is critical, especially in volatile markets. Better connectivity not only saves time and effort but also provides wealth managers with a holistic view of their clients’ financial information. This enables them to track strategic and tactical asset allocation more effectively and facilitate better investment decisions.

Customised Client Experiences

Open APIs empower wealth managers to deliver customised client experiences by integrating third-party applications and services into their wealth platforms. Wealth managers can use open APIs to provide clients with access to a wide range of financial tools, such as financial planning calculators, risk assessment tools and investment research platforms.

Additionally, wealth managers can leverage open APIs to integrate with other financial service providers, such as tax advisors, estate planners and insurance providers, to offer comprehensive private wealth management solutions to their clients.

By offering these tools within their own platforms, advisors can create a seamless and integrated experience for their clients, enhancing overall client satisfaction and loyalty.

Expanded Investment Opportunities

Open APIs unlock access to a broader range of investment opportunities and enable advisors to connect clients with multiple wealth platforms. These include robo-advisors and alternative investments, such as private equity, venture capital, hedge funds and real estate, which were traditionally only available to institutional investors.

This expanded access allows wealth managers to offer a more diverse and sophisticated investment service. Not only does this enable advisors to enhance the diversification of client portfolios and access greater returns, it also provides advisors with additional revenue streams through fees and commissions.

Operational Efficiency

Wealth managers can use open APIs to streamline operational processes, such as client onboarding, portfolio rebalancing and trade execution, which drives improved efficiency and cost savings. For example, open APIs can be used to automate the process of rebalancing clients’ portfolios based on their investment goals and risk tolerance, ensuring that their portfolios are aligned with their financial objectives, and automate trade execution to reduce the time and effort required to place trades manually.

Improved operational efficiency through automation not only reduces manual errors but also frees up wealth managers’ time to focus on more value-added activities, such as client relationship management and investment strategy.

Collaboration and Innovation

Open APIs foster collaboration and innovation among wealth managers, financial technology companies and other stakeholders in the financial ecosystem. Wealth managers can collaborate with fintech companies using open APIs to develop and deploy innovative solutions to enhance their services and meet the evolving needs of their clients.

Collaboration through open banking is gaining traction in the wealth management community. For example, The OpenWealth Association in Switzerland was formed to enable collaboration between custodian banks, wealth management technology providers and API service providers to develop, maintain and distribute standardised APIs for the global wealth management industry. With rapid adoption in Switzerland, OpenWealth’s standardised practices are driving true collaboration in the ecosystem of custodian banks, independent asset managers and wealth tech providers.

Wealth managers and family offices stand to gain from this new wave of collaboration. They can access banking services cost-efficiently, and serve their clients effectively, without a lock-in on custody banks. They can also connect to an ecosystem of wealth management technology providers with offerings that go beyond financial services, for example mobility, healthcare, education, entertainment, concierge services and real estate. This paves the way for the growth of financial super-apps that combine banking, private wealth management and other services in an integrated way and in one place. Collaboration and innovation of this type enables advisors to keep their offerings fresh and relevant, deliver an increasingly comprehensive service and stay ahead of evolving client needs.

An Open Banking Future

The exchange and management of data through openly available APIs has the potential to transform the private wealth management industry. As open banking becomes increasingly mainstream, advisors can harness its opportunities to drive enhanced service, greater operational efficiency and accelerated business growth.

For more information about Valuefy’s wealth management technology solutions please contact us.

Get in touch to arrange a meeting to explore these themes in more detail and discuss our insights in wealth management technology.

About Valuefy

Valuefy is a premier investment technology lab with cutting-edge solutions serving leading financial institutions across the globe. Its Wealth Management Solutions has enabled Wealth Managers globally by providing production-grade investment technology solutions for an uberized customer experience.

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Is Good Advice Enough to Retain a Client?

Wealth managers are increasingly tasked with delivering holistic solutions that combine meaningful advice and bespoke service, rather than focussing only on advice.

Investors seek to be informed and empowered to make their own decisions, rather than solely relying on their advisor. They also expect more from their advisors than what can be accomplished through digitization alone.

As client expectations, wealth management technologies and market conditions evolve, how should client engagement team advice in a highly dynamic and competitive market?

Achieving Client Goals

The aspiration for all best wealth managers should be to help investors manage their wealth in order to achieve their goals in every area of their life, both now and in the future.

This requires an integrated approach powered by technology to strengthen client relationships, manage data to deliver actionable insights and sage advice, and deliver enhanced client service.

However, providing customised and comprehensive advice blended with first-class service can be challenging, especially as markets, technologies, and client expectations evolve rapidly.

Wealth Management Technology Responses

Client engagement team needs to deploy a hybrid of in-person and digital engagement to foster trusted client relationships and deliver solutions that meet their unique needs, concerns and challenges.

A crucial part of this approach is selecting, implementing and managing digital technology. The advisor’s technology infrastructure must be deployed and integrated at every stage of the client lifecycle across onboarding, account management, analysis, trade and investment mandates, and reporting.

By leveraging effective data management and richer analytics, advisors can uncover actionable insights, act in a more responsive and agile way, and empower clients to make decisions and provide personalised, high-touch service.

Cover All the Bases

The integrated platform should provide consolidated multi-asset, multi-currency and multi-custodial capabilities.

This will enable client engagement team to deliver a nimble and broadly diversified portfolio with a multi-asset strategy that combines different types of assets, including equity, fixed income, currency, commodity and alternative investments.

It also ensures efficient portfolio construction and management, including proposal generation, modelling, tax rebalancing, reporting and billing, across assets at multiple custodial firms. A robust multi-custodian platform also helps reduce data inconsistencies, regardless of where accounts are held.

In an increasingly interconnected world, the integrated solution should deliver multi-currency portfolio management, tracking and reporting for GIPS composites, bonds, options and futures.

Backed by advanced wealth management technology, an integrated solution can help advisors enhance client service, operational efficiency and competitive advantage in a meaningful, sustainable and valuable way.

Driving Holistic Solutions

By combining technology, data and service, wealth managers can improve client experience, strengthen client trust, and increase efficiency and transparency throughout the entire client lifecycle. This can help unlock the promise of holistic client engagement that blends expert advice with outstanding service to empower clients to achieve their goals.

About Valuefy

Valuefy is a premier investment technology lab with cutting-edge solutions serving leading financial institutions across the globe. Its Wealth Management Solutions has enabled Wealth Managers globally by providing production-grade investment technology solutions for an uberized customer experience.

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How Wealth Managers Can Help Maintain Client Relations

Maintaing client relations is a crucial component of success in wealth management. It enables wealth management advisors to properly understand and serve their client’s needs, help them achieve their financial goals, and retain their business over the long-term. But the ways in which advisors engage with clients and help in managing client relations is changing.

As digital transformation accelerates and client expectations evolve, traditional approaches must be complemented with an enhanced digital experience.

Wealth management advisors can leverage these new opportunities to create more effective engagement models that help craft solutions tailored to each client’s unique needs, concerns and challenges.

A Changing Market

With digital transformation and shifting client expectations, advisors can struggle to provide customised and comprehensive investment advice based on a deep understanding of client needs. Clients expect advisors to act as true partners and co-create a relationship based on client inputs, rather than advisor assumptions and standardised solutions.

Irrespective of age or wealth, investors expect a combination of breadth of service offerings, expert and timely investment advice, and outstanding client service. But there have been significant shifts in recent years in terms of how clients expect to be served.

Clients increasingly expect digital engagement across onboarding, transaction and advice. Non-digital interaction, through in-person meetings and phone calls, is increasingly complemented, and even replaced, by online engagement using mobile apps, websites, social channels and virtual conferencing.

These changes mean wealth management advisors need to create a client experience based on how investors want to engage, when they want to engage and what channel they prefer to use. They need to nurture the client relationship to ensure collaboration and a mutual understanding of the investor’s needs and goals.

This provides an opportunity for advisors to deploy a hybrid of in-person and digital engagement to create strong relationships, foster client confidence and trust, and deliver personalised, high-touch service.

In this new landscape, wealth managers can leverage multiple technology and data resources to build and strengthen client relationships and deliver enhanced service.

Technology, Data and Service

Digital technology solutions must be deployed and integrated at every stage of the client lifecycle. From the first touch point of the relationship, technology can be used to create a seamless and productive client journey that spans onboarding, account management, analysis, trade and investment mandates, and reporting.

For onboarding, digital solutions can offer configurable, collaborative workflows that provide automated AML, KYC and identity verification, secure document repository and simplified, streamlined client-facing functionality such as auto filled onboarding forms.

Digital solutions are also crucial to deliver robust account management and world-class investor portals and apps, including mobile apps, consolidated reporting, data privacy security, direct order placement, and digital signature, approval and notification functionality. Enhanced transparency and access to performance information can significantly boost trust in maintaining client relations over time.

For client lifecycle management, advisors can deploy technology that supports periodic automated and ad hoc reviews, prospect management and investment proposals, as well as customer relationship management (CRM) functionality.

Delivering Actionable Insights

To build or strengthen client relations, wealth managers can leverage technology to more effectively uncover, understand and act on their client’s long-term goals and purpose for investing.

From initial engagement, onboarding and beyond, a plethora of data must be captured, managed, analysed and interpreted to drive data-driven insights and relevance.

Technology can be leveraged to eliminate data silos, organise client data into a unified system, and ensure that information is managed in a connected way across systems and processes.

This is a key enabler of data analytics. It ensures that meaningful value is extracted from data to generate a complete and holistic picture of client needs. It enables insights about the dynamics of their behaviour, whether that be routine beneficiary changes, shifting attitudes to risk or evolving life goals.

These actionable insights can help wealth management advisors take quick, appropriate and timely action to foster trusted relationships and provide the best service and advice possible. To deliver outstanding client engagement, advisors must consistently strengthen trust and mutual understanding within the relationship and act on insights and feedback to deliver expert advice and continuous improvements in service.

Multiple colleagues who are not co-located can work on a single platform to deliver exceptional client service while maintaining efficiency and scalability.

Competitive Edge

Another reason to deploy digital solutions is to gain market intelligence through client engagement. This can help wealth management advisors identify the other disruptive apps that clients are using, learn more about them, and apply that intelligence to improve their propositions, service and operations. This presents a key source of competitive advantage to wealth management firms in a highly dynamic, complex and competitive market.

Digital advances and changing client expectations are re-shaping the wealth management industry. The most successful advisors are those who select, implement and manage advanced technology to drive excellence in client engagement.

About Valuefy

Valuefy is a premier investment technology lab with cutting-edge solutions serving leading financial institutions across the globe. Its Wealth Management Solutions has enabled Wealth Managers globally by providing production-grade investment technology solutions for an uberized customer experience.

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Wealth Platform UK - Valuefy

Valuefy's Wealth Platform is a modern, cloud-based solution for wealth managers, banks, and financial advisors in the UK. Our platform offers comprehensive portfolio intelligence and analytics, streamlining frontend and backend operations for better decision-making and reporting. Contact us today to optimize your wealth management operations with our modern software solutions.

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Wealth Management Software UK - Valuefy

Valuefy provides Wealth Management Software in the UK for EAMs, wealth managers, and financial advisors with cloud-based customized software solutions. Our modern portfolio management software integrates front, middle, and back-office functions, empowering better decision-making and reporting. Contact us today to optimize your wealth management operations in the UK with our customized software solutions.

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Financial Asset Management Software UK - Valuefy

Valuefy offers financial asset management software in the UK that enhances financial data aggregation and enables smarter decision-making for relationship managers and advisors. Our cloud-based software provides comprehensive portfolio intelligence and analytics. Contact us today to optimize your investment management operations in the UK with our customized software solutions.

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Wealth Management Technology Solutions Company - Valuefy

Valuefy is a leading wealth management technology solutions company that offers cloud-based software solutions for EAMs, wealth managers, and financial advisors. Our modern portfolio management software simplifies operations, empowering better decision-making and reporting.

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Driving Efficiency and Managing Cost in Regulatory Compliance

Wealth management is under intense regulatory scrutiny. The industry is seeing mounting efforts by regulators to improve competition and investor protection, strengthen firm’s governance and accountability, and enhance sustainability reporting and disclosures.

However, regulation can be a significant roadblock for expansion in wealth management. It puts enormous pressure on overhead costs when scaling a business across multiple geographies.

Leveraging technology is the only way to effectively manage the complexity and cost of regulation while maintaining competitive performance.

Regulatory Obligations Proliferate

Regulators continue to strengthen frameworks and requirements related to investor protection and choice, governance and accountability of advisors, and reporting and disclosures related to environmental, social and governance (ESG) investing and company sustainability efforts.

Though jurisdictions are at different stages of implementation, most regulators are focusing their attention on the increasingly digital nature of distribution, the quality of outcomes and value for money for investors, and product governance for the target market of end clients and related distribution strategies. But at the same time, regulators are increasingly promoting their jurisdictions as asset management domiciles. This widens choice for clients, especially sophisticated or semi-professional investors, and creates new opportunities for wealth managers.

Recent years have seen regulators step up accountability arrangements related to the resources, capabilities and expertise of wealth management technology firms. For example, they are implementing mandates for combating financial crime, sanctions compliance, operational and cyber resilience, and achieving diversity and inclusion targets.

There has been a whirlwind of regulation about sustainable finance, some of which is particularly complex. This encompasses a myriad of topics with limited common definitions related to the breadth and depth of disclosures. Additionally, sustainability regulation is not harmonised across jurisdictions. For example, mandatory reporting requirements for climate change in different jurisdictions are progressing along different trajectories, especially with regard to implementation timeframes and the sizes and types of companies impacted. It’s increasingly difficult and costly for wealth managers to gather the data they need regarding their investments for the purposes of their own disclosures.

Wealth Management Technology Solutions for Effective Regulatory Compliance

Staying on top of regulation, and implementing effective compliance processes, can be a significant challenge. Wealth platforms are spending more time than ever on regulatory compliance, as regulatory obligations continue to increase across all jurisdictions.

Advisors must implement effective processes that ensure adherence to regulations for anti-money laundering, know-your-customer and data privacy. This requires staying current with regulatory changes, conducting regular compliance reviews, and implementing robust data security measures.

The solution lies in implementing strong, integrated and scalable operational workflows for regulatory compliance. The workflow must be able to manage quality checks, for both clients and investments, and provide the flexibility to accommodate for changing regulatory agendas and requirements across jurisdictions.

Because regulation touches all parts of wealth management, the solution should be embedded throughout the wealth platform across front, middle and back office operations. It should be built to ensure risk monitoring and compliance management functionality, including customer suitability and investment risk analysis, customisable pre- and post- trade rules, regulatory reporting for different regimes, provision of audit trails, and client classification and risk categorisation.

As regulatory pressures continue to rise, leveraging wealth management technology and digitising workflows is the only way to ensure robust regulatory compliance while managing costs in an appropriate way.

No matter their size, wealth platforms should be implementing wealth management technology solutions to enhance regulatory compliance, improve operational efficiency, and future proof their business.

About Valuefy

Valuefy is a premier investment technology lab with cutting-edge solutions serving leading financial institutions across the globe. Its Wealth Management Solutions has enabled Wealth Managers globally by providing production-grade investment technology solutions for an uberized customer experience.

[abhijeet20a]

The Role of Technology in Integrated Wealth Management

Delivering successful integrated wealth management solutions requires a deep understanding of a client’s financial situation, goals, and risk tolerance and the ability to translate this into holistic, personalised advice that truly meets their needs. But what are the key issues facing wealth managers who adopt an integrated approach and how can they overcome them to succeed in today’s market?

Bespoke Excellence in Wealth Management Solutions

One of the greatest challenges facing integrated wealth managers is delivering a personalised and customised solution to each client. Clients have unique financial goals, risk tolerance, and investment preferences and an integrated wealth manager must be able to adapt to each client’s needs and provide customised solutions.

In order to do so, advisors must build a strong relationship with the client and take the time to get to know them. They should ask questions about their financial goals, family situation, investment preferences, investment risk tolerance, and broader vision for what they are trying to achieve with their wealth. Along with asking lots of questions, advisors must also listen. This ensures they can provide the most appropriate advice based on what’s truly important to the client and what they want to achieve now and in the future.

This approach will help advisors develop fit-for-purpose, personalised investment management solutions that meet their client’s needs. The wealth plan will include advice on the structure through which an investment is held, for example, individual ownership, company, pension, trust, or another tax-efficient wrapper, and the underlying investment elements, for example, stocks, bonds, or alternative investments depending on the client’s investment risk tolerance.

Shifting Client Expectations

In seeking greater returns, clients are increasingly considering alternative investments. These investments include specialised products, such as IPOs, tax-exempt investments, commodities, derivatives, and structured products, and, in the case of family office solutions, allocations to direct investments.

As always, advisors will talk to their clients about investment risk as well as return. Indeed, risk mitigation and diversification remain front of mind with continued concerns about geopolitics, growth, inflation, climate change, supply chains, and a range of other headwinds.

Environmental, Social, and Governance (ESG) investing remains important to many investors. And asset managers are stepping up their ESG offerings accordingly. While ESG adoption varies across geographies and jurisdictions, it continues apace given continued social, business, and investor awareness of non-financial risk following the pandemic.

Regulatory Challenges

Staying up-to-date with regulations, and implementing effective compliance processes, can be a significant challenge. Asset managers are spending more time than ever on regulatory compliance, as regulatory obligations and reporting requirements continue to mount. In fact, for many wealth managers, regulation can be a roadblock to expansion and present significant challenges for their overhead costs when scaling their business across multiple geographies.

Advisors must implement effective processes that ensure adherence to regulatory requirements across anti-money laundering, know-your-customer, and data privacy regulations. This includes conducting regular compliance reviews, staying abreast of regulatory developments, and implementing robust data security measures.

Wealth Management Technology Solutions and Choices

Wealth management technology solutions are rapidly changing. The use of multiple systems, or a lack of effective systems, leads to operational inefficiencies. With numerous solutions available, selecting the right technology, and integrating it into the business, can be a challenge.

Deploying investment management solutions can ensure that burdensome risk management and reporting workflows are automated. It also helps significantly enhance the reporting experience for clients. With the right technology integrated seamlessly into existing systems, multiple teams can work on a single platform and deliver efficiency, transparency, and scalability. This frees up time and resources for activities that truly drive differentiation and performance, such as portfolio analysis, innovation, and business development.

How to Harness Technology for Integrated Wealth Management Solutions

Wealth managers must build a wealth technology infrastructure that supports an integrated, holistic offering to clients, reduces cost, and increases efficiency. This infrastructure must provide highly reliable data aggregation to connect to banks and brokers, standardise and harmonise data and ensure it’s available in one place for investment analysis and portfolio management. It should enable an Order Management System (OMS) that connects to different counterparties, and manages transaction workflows and compliance, across various asset classes and multiple users within the firm.The wealth platform should support performance reporting, risk analytics, and visualisations of portfolios and help transform data into insights. To help clients make informed decisions, it should enable advisors to perform model portfolio management, conduct rebalancing and produce investment policy statements in a scalable and compliant way. This will enable advisors to engage with customers digitally while maintaining control and oversight.

An integrated wealth management platform, backed by advanced technology, empowers advisors to significantly enhance operational efficiency, digital experience, and business performance – and ultimately exceed client expectations in a changing market.

About Valuefy

Valuefy is a premier investment technology lab with cutting-edge solutions serving leading financial institutions across the globe. Its Wealth Management Solutions has enabled Wealth Managers globally by providing production-grade investment technology solutions for an uberized customer experience.

[abhijeet20a]

The Data Management Advantage for Wealth Managers

Data management is under the spotlight for wealth managers, as clients expect increasingly personalised, digital, and data-driven services. Advisors who master data management can drive value right across their business and achieve a competitive advantage over their rivals. But what are the key challenges in data management and how can wealth managers excel in this area?

Data Management is a Journey in Wealth Management

Wealth management lags behind other sectors, both within financial services and beyond, in its progress along the data management journey.

The journey normally begins when an advisor recognises the essential role of data management in digitising operations and generating insights for organisational and investment decision-making. So the business embarks on a process of improving the value, fidelity, and timeliness of its data.

The process typically progresses from data aggregation and consolidation – where advisors need to connect to data sources, custodians, and other solution providers – to analytics and insights, where they can deliver powerful reporting and investment performance analytics using their data. It culminates when data is fully embedded in business processes and the entire business model is predicated on analytical models.

Challenges Along the Wealth Management Way

Progress along the data management journey can be costly and slow for wealth managers, EAMs, and family offices alike, if not managed correctly. Data used in the investment management solutions must be accurate, complete, and consistent in order to make informed decisions. But complex and fragmented data often straddle a wide range of internal and external sources and span different formats or systems. This can make it difficult to ensure data quality and integrate data into a single, comprehensive view.

Additionally, wealth managers must implement robust data security measures, such as encryption, firewalls, and data backup systems, to protect against cyber-attacks and data breaches and comply with regulations. Data management policies and procedures must be in place to govern who has access to data, how it is stored and used, and how it is protected against theft or misuse. This is essential for maintaining trust and accountability in investment management solutions and ensuring that data is used in an ethical and responsible manner.

Taking the Right Steps

Typically, wealth managers will connect to banks to perform the extract, transform and load (ETL) data integration process – either by connecting directly to the custodian or doing so via a data aggregator. But they need to deploy the right technology and tools to be effective.

At the extract stage, data is gathered from a variety of sources, including internal databases, external providers and client information. This is achieved by using data extraction tools such as APIs or database queries.

Extracted data is then cleaned, formatted, and transformed so it’s consistent and usable for investment analysis and portfolio management. This may involve removing duplicates, dealing with missing or incorrect values, and converting data into a common format. Data transformation tools, including scripting languages, data quality tools, and data mapping tools, can be deployed to accomplish this.

The transformed data is then loaded into a central repository, such as a data warehouse or data lake, for easy access and investment analysis. This part of the process can be managed using data-loading tools like database management systems, cloud-based storage solutions, and data integration platforms.

The end goal is to empower wealth managers to make critical investment and business decisions based on data. It also enables them to reduce time spent on manual tasks, increase client-facing time and improve the overall client experience. In addition, robust data management can help advisors streamline their KYC process, ensure smooth onboarding, and deploy advanced CRM and workplace collaboration tools.

Differentiation through Data Management

Managing data as an asset is now a crucial aspect of operating strategy for advisors. It enables them to drive global expansion, improve marketing and sales enablement, offer an exceptional digital experience to clients and leverage high-quality data for better investment decision-making. Faced with growing compliance mandates, advisors are also actively seeking ways to improve data transparency for client and regulatory reporting. 

With the right technology and tools for data management, advisors can boost their business performance and competitive advantage in the market and deliver enhanced digital services and superior investment outcomes for clients.

About Valuefy:

Valuefy is a premier investment technology lab with cutting-edge solutions serving leading financial institutions across the globe. Its Wealth Management Solutions has enabled Wealth Managers globally by providing production-grade investment technology for an uberized customer experience.