Competition and new regulations drive innovation in investment advisory

by Didier Pitton, Product Marketing Manager, Odyssey

Faced with increased competition, more demanding clients and stringent regulatory constraints, private banking and wealth management institutions are designing innovative investment advisory service models. In order to offer this service at a reasonable cost, new software requirements have emerged.

In today’s world, clients are expecting greater personalization and better investment performance. Firms should focus on not just selling their products but provide structured advice and highly personalized portfolio management services across multiple life cycle steps. This fundamental model shift to structured investment advisory is required to improve client retention.
In the context of our activity as a front-office software vendor for private banking and wealth management, we work with a great number of private banking and wealth management institutions. Never have we seen so much effervescence around a service as there is with the conception and evolution of investment advisory. Nearly all the players that we meet in Europe and the United States are trying to develop their investment advisory business so that it is transformed from a niche activity reserved for wealthier, market-aware clients to a structured service proposed to all the clients without discretionary business mandates. The gap is quite noticeable between the most advanced establishments that are already successfully proposing this product (service) and those in which structured investment advisory is still at the design stage.

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