15 questions to assess your needs in portfolio management system

16 Apr 2014

50{f906ae7b0342626db1803c54904890c40a5857e3ac4966d38695ac35cf613e36} of American companies dealing in the wealth management industry agree on the fact that technological investments are one of the main operational issues. This trend has also been observed in Europe where integrating a portfolio management solution represents a strategic investment.

Today, this situation is taken for granted. Now, we need to adapt and react. Maybe you don’t know what are the different steps to go through? This is exactly why our experts have prepared for you 15 questions that will help you dealing with several aspects of your business: commercial matters, organisational problems, growth and development strategies…

It doesn’t matter if you are already equipped with a centralised management software. We strongly recommend you to take time to answer these 15 questions, by yourself or with your team. You would then be able to estimate your needs in terms of equipment and to know if your current situation allows you to reach the different levels of quality, performance and competitiveness you want to achieve.

1 – How many co-workers are working with you?

The more employees you have, the more difficult it is to convey information and to have a clear vision on tasks execution. It is then vital to go for a solution integrating all the functionalities which are necessary to optimise team working efficiently.

Our recommendation: we strongly recommend adopting a centralised management software if you have more than 3 co-workers.


2 – Are your co-workers all located in the same office or are they geographically scattered (working in more than one office)?

Many management companies are not working on one single site, meaning they have several offices. Therefore, they need to work on a software that would be complete and highly customisable. The goal of such a solution is to provide the same tool to all teams worldwide and to give them the opportunity to customise the solution as they want in order to use the software as efficiently as possible.

Our recommendation: If your company is operating on 2 different sites or more,  we recommend you to use a centralised portfolio management software.

3 – Are your clients homogeneous or heterogeneous?

Regarding several parameters such as age, objectives, experience, fortune (…), management objectives evolve. Moreover, some clients are clearly risk averse. A powerful tool has to provide a solution including dynamic management profiles that can evolve easily regarding the client’s objectives and the specific regulations to which this client is submitted.

Our recommendation: It is essential to be able to control at any moment that the chosen investment strategy fits the client’s profile.

4 – Do you have many clients? Is your clients’ database growing?

The more clients you have, the harder it is to deeply know each one of them. Operational risks are increasing with the number of transactions to realise for each portfolio. Again, the risk is high to miss an important information and to depart from clients’ profiles.

Our recommendation: A portfolio management system will help you reminding and registering clients’ profiles that are highly different, and to easily follow flows and movements.

5 – Maybe your clients have several features?

Being able to manage a huge amount of contacts, each one of them having different strategic characteristics (for instance law regulations or commercial links) is one of the key aspect of an efficient solution.

Our recommendation: Using CRM that is included in a complete solution is the only way to answer positively and efficiently to all your clients’ investment wishes and desires.

6 – Are you using tools that are coherent with your management style?

The daily management of your activity requires to complete tasks that can be complex and repetitive. Therefore, computing partner’s payments (commissions or retrocessions), controlling systematic compliance, or daily reporting require appropriate and powerful tools in order to offer a qualitative service and to decrease the number of low-added value tasks completed by your employees.

Our recommendation: If you are working with more than 5 partners or custodians, a centralised management solution offers you 2 advantages. First, the software will relieve your employees who will then have more time to allow to their main tasks, and second, it will dramatically reduce risks linked to mistakes or errors while computing payments.   

7 – Do you have many custodians to manage?

The independence of a wealth management company often results in cooperating with several custodians. However, this varied environment increases the complexity of the daily management of portfolios. Being interfaced with its partner banks, being able to automatically import the operational data or the market data (positions, movements, quotations) and therefore having detailed and exhaustive information to analyse and monitor the clients’ portfolios  are a source of efficiency and productivity for the company.

Our recommendation: If you are working with 4 custodians or more, we strongly recommend you to use a centralised solution for e-banking terminals.

8 – Are your tools and processes matching your current needs?

As your company grows, its needs in management and automation of the activity are increasing, especially when considering the number of clients, employees and portfolios to manage. The spreading and sharing of information becomes more complex with the growth of activity.  Work methods then need to be simplified to guarantee the performance and security of decisions. The integration of a centralised, upgradeable and scalable management solution makes it possible to support the development of the activity by offering tools and a flexibility of use that match each stage of the development.

Our recommendation: we recommend to integrate a centralised management solution that offers you flexibility and adaptability for each step of your growth.

9 – How do you consolidate your client’s portfolios?

The automatic consolidation of data, regardless of the number of custodians with whom you’re working, the used currencies or the diversity of your investments formats (financial, unquoted, real estate…) is a strategic challenge in terms of commercial performance and client relationship management.

Our recommendation: A portfolio management solution will automatically manage this task according to several criteria. The owner will gain time and performance. The client will benefit of a top solution having detailed views.

L’avis de nos experts : Une solution de gestion de portefeuilles permet de gérer cette tâche automatiquement et selon de multiples critères. Le gérant gagne en temps et en performance. Le client bénéficie de vues détaillées et d’un service de haut niveau.

10 – How do you manage compliance and how do you control your clients’ files?

The compliance management isn’t only a matter of audit. It’s a daily practice that raises your level of requirement. This rigor has an immediate impact on your clients’ trust.

Our recommendation: Managing compliance is still today one of the main challenges of independent managers. Their overall performance is partly linked to their capability to quickly and efficiently manage regulations and administrative constraints.

11 – How do you manage the transmission of orders with your custodian banks?

The order book is one of the most vital data for a portfolio management company. Being an audit and management tool at the same time is at the heart of the decision-making process. The lack of visibility and the complexity of the achievement of this task are usually the causes of the lack of reactivity and thus of efficiency.

Our recommendation: Typing and registering orders is a repetitive task with a low-added value. Centralising and automating this process is a way to save costs, mainly human resources.

12 – How do you calculate the performance of your clients’ portfolios?

Being able to easily inform the clients about portfolios is a powerful tool of satisfaction and fostering client loyalty.

Our recommendation: Reporting is not any more a path for differentiation, but just a minimum sercive to provide. Today, clients require a 24/7 access to their assets via smartphones.

13 – How do you track the profitability of your company?

Management companies must be able to accurately evaluate and monitor the evolution of their products and expenses to remain competitive and to offer their services to their clients at the lower costs. Is your tool capable of guaranteeing a daily and detailed visibility of your situation and results?

Our recommendation: As mentioned above, any portfolio management company should provide to its clients a 24/7 access to their assets via smartphones.

14 – Is your data secured?

Having an efficient tool for protecting the security and  privacy of a company’s data is vital. Does your tool allow you to encrypt information, to set users’ rights and users’ access to information?

Our recommendation: Independent wealth managers must work on a tool where they can encrypt information, set users’ rights and access to information.

15 – How much time do you spend extracting, consolidating and compiling data?

Having several tools for managing the different aspects of financial management can be problematic when it comes to the accuracy, the fluidity and therefore the efficiency of the processes. Selecting data in a smart and cross-classified way, consolidating it and formatting it can quickly become  time-consuming, and even unproductive.

Our recommendation: A centralised management tool significantly relieves the work load linked to data treatment and data consolidation. The more clients you have, the more we recommend you to use a centralised management software.

Going further…?

Now that you took time to analyse your own situation, for sure you have a clearer idea of your needs and objectives. If you want to discuss your project, please contact us to set a meeting.

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