Spend on IT by Wealth Management Segment Expected to Top $28 Billion

<strong>London &mdash; Oct. 31</strong><br />The mass affluent market remains a growth opportunity for the banking sector as the asset base of typical investors expands. A new report by independent market analyst Datamonitor, &ldquo;Building a Technology Platform for the Ultimate Offering &mdash; Retail Banking Technology&rdquo;, predicts spending by financial services firms on front-to-back wealth management IT in North America, Europe and Asia-Pacific will reach $28.5 billion by 2012, as they increase investment in the technology to cope with market regulations and stay competitive. For technology vendors, opportunities are not restricted to the private banking industry alone but also extend to retail banks, insurance providers, independent financial advisors, retail asset managers and retail brokerage houses.<br /> <br />The emergence of a wealthy and especially mass affluent segment is fueling growth in new services and distribution options, which will require a more sophisticated approach to technology. &ldquo;Wealth managers, private bankers and retail banks are no longer talking of stand-alone strategies for wealthy individuals&rdquo;, says Jaroslaw Knapik, financial services technology analyst with Datamonitor and author of the study. &ldquo;The trend is towards &lsquo;integrated financial solutions,&rsquo; revolving around cross-selling banking, savings and investment products wrapped with advice.&rdquo;<br /> <br />Front and middle office technology becomes a competitive differentiator<br /> <br />Effective front and middle office tools, such as portfolio management, financial planning and analytical customer relationship management systems (CRM), lie at the heart of wealth management operations. Clients, particularly the more active &lsquo;new money&rsquo; segment, are demanding a more hands-on approach from their relationship managers. This creates a…



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