Outsourcing offers a ‘strategic advantage’, wealth managers say

Wealth managers are reaping the benefits of outsourcing, with the majority saying outsourcing can provide a “strategic advantage”.

A report published by Titan Wealth Solutions – The Link Between Outsourcing, Profit and Scale – suggested that by providing business expertise and specialized technology, outsourcing offers both “cost savings and ‘operational efficiency’.

Around 83% of wealth managers who participated believe outsourcing can benefit their business.

The report also suggests that the wealth management industry still needs to optimize business scalability.

Over the past five years, only 37% of UK wealth managers have been able to grow their revenues faster than their costs.

Titan said much-needed investments in digital technology across the front, middle and back office are driving productivity and allowing staff to spend more time creating value for end customers.

The report found that while wealth managers are increasingly open to exploring outsourcing to scale faster, adoption rates remain relatively low at only around 11% of total operating costs. devoted to outsourcing.

Titan said companies that fail to realize the benefits of outsourcing face higher ongoing costs in terms of continued technology innovation and increased regulatory burdens.

The firm’s Group Sales Leader, Tom Wooders, said: “Our report has clearly highlighted the post-Covid appetite of wealth managers to reap the benefits of outsourcing in terms of digital technology innovation and increased productivity through end-to-end process automation.

“Selecting an outsourcing partner that can offer ease of onboarding and an appreciation of the wealth manager‘s business imperatives is now seen as critical to achieving future scalable business growth.

Dolores W. Simon