Ranking Wealth Management Platform Vendors: 2012

by Alexander Camargo,  Isabella Fonseca, September 14, 2012
Vendor Reviews
North America

Abstract

There has been renewed interest in the infrastructural support and seamless integration that wealth management platforms offer. Heading into the next year, Celent expects spending on platforms to increase 6-7%.

In the report Ranking Wealth Management Platform Vendors, Celent examines nine leading wealth management platform solutions in the North American market. The following vendors are profiled: Finantix, Fiserv, FIS, InformaIS, InvestEdge, SEI, SunGard, Temenos, and Thomson Reuters.

Volatile market performance and lackluster economic conditions have led to investors choosing less risky investments (cash and fixed income), which are less profitable and impact product yields for wealth managers.

“As a way to control costs, wealth managers are looking to outsource as much as possible while simultaneously controlling the number of vendor relationships. While these desires may seem contradictory, wealth management platforms support several components of the advisory process, eliminating the need for many point solutions,” says Alexander Camargo, Analyst with Celent’s Securities and Investments Group and coauthor of the report. “A platform’s open architecture offers the ability to integrate with third party and in-house solutions. Thus, platform vendors become a central point of contact for wealth managers to make queries about integration, about functionality support, etc. This introduces a new level of accountability and clarity in vendor-client relationships. ”

“Wealth managers have no choice but to expand their target client range and introduce new channels of service. This can potentially increase the complexity of managing multiple systems, functionalities, and user interfaces,” adds Isabella Fonseca, Research Director and coauthor of the report. “Platforms allow administrators and enterprises to manage these different channels in a consistent and streamlined manner.”

This report begins with a definition of wealth management platforms, and the criteria for vendor participation in the report. A look at current market and technology trends follows. The report features a detailed profile for each wealth management platform vendor, identifying its strengths and weaknesses. Also included in the study is a vendor comparison section, which evaluates each solution’s features and functionalities and further compares vendors by various functionalities. The last sections include a ranking of wealth management platform technology vendors through Celent’s ABCD dimensions and considerations regarding where the wealth management platform market is headed.

This 77-page report contains 18 figures and 33 tables.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America (Boston)
Erica Ferguson
eferguson@celent.com
Tel.: +1 617 262 8225

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)208 870 7875

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81.3.3500.3023

Table of Contents

Executive Summary

1

Introduction

3

 

Research Methodology

3

 

Defining Wealth Management Platforms

4

 

Criteria for Participation

4

 

Celent’s ABCD Vendor Analysis

5

Market Overview

7

 

Drivers of Wealth Management Platform Adoption

7

 

Market Trends

7

 

Technology Trends

9

Vendor Preview

12

Vendor Profiles

15

 

Finantix

15

 

Fiserv

18

 

FIS

20

 

Informa Investment Solutions

23

 

InvestEdge

25

 

SEI Investments Company

26

 

SunGard

30

 

Temenos Group AG

33

 

Thomson Reuters

37

Vendor Comparison

41

 

Technology Delivery, Implementation

41

 

Partnerships

44

 

Client Base and Client Support

45

 

Asset Classes and Product Support

48

 

Customer Relationship Management and Account Aggregation Functionality

50

 

Financial Planning Support

52

 

Plan Generation

55

 

Asset Allocation, Portfolio Construction, and Risk Analytics

56

 

Trading and Compliance

57

 

Back Office

58

Mobility Coming of Age?

60

 

Vendor Developments in Mobility

61

 

Ongoing Considerations in Mobility

64

 

Addressing Challenges in Mobility

65

Vendor Ranking

66

Looking Forward

69

Leveraging Celent’s Expertise

71

 

Support for Financial Institutions

71

 

Support for Vendors

71

Related Celent Research

72

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