Celent Forecasts $3.7 Billion Spend on Wealth Management IT in 2010 Jan 08, 2010 URL: http://www.financetech.com/showArticle.jhtml?articleID=222300045
Celent's latest research on financial institutions' wealth management business and IT priorities calls for a hearty increase in technology spending to serve wealthy clients.
After conducting interviews with 46 financial institutions, including Celent's prospects and clients, the firm drew several conclusions, such as these:
* In 2010, wealth management technology spending at financial institutions will increase between 5% and 20%.
* Firms will invest mostly in technology around front office and back office requirements, including advisor platforms, compliance, reporting, self-service, and integration.
* Although financial firms will continue to focus on high net worth and ultra-high net worth individuals, they plan to expand and develop opportunities in the mass market and mass affluent segments.
* Firms are looking at ways to reach out to lower net worth clients with self-service models.
"Projects that were put on hold in 2008-2009 will likely restart in 2010," said Arin Ray, analyst and coauthor of the report, in a statement. "Firms will focus on reducing costs and augmenting advisor productivity through the use of technology, carefully evaluating the ROI before making any investment."