Post-trade services are one of the functions most likely to be outsourced by wealth managers, finds a recent survey. The study, titled “Disruption and Transformation in Wealth – Future-proofing Service and Operating Models”, was conducted by Citi’s strategy consultancy, Citi Business Advisory Services. It aimed to “generate both qualitative and quantitative insights into the current challenges and potential future opportunities across the wealth ecosystem”.

Based on data gathered from about 160 participants across the APAC, European and North American markets, the survey found that an overwhelming 75 percent of respondents prefer to outsource their technology development strategy.

66 percent of respondents are either already outsourcing or likely to outsource post-trade services. Areas most unlikely to be outsourced include onboarding and KYC (56 percent); client services, reporting, and data (50 percent); and compliance, regulatory, and tax reporting (54 percent).

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New challenges, new focus

Digital client experience came out tops as the most important area of focus for technology and operations, with 67 percent of respondents citing it as a priority. According to Okan Pekin, Citi’s global head of securities services, challenges to the wealth industry include “the emergence of new technologies”, “demands for a native digital client experience”, and “the largest intergenerational wealth transfer in history”. He says, “the research outlines ways in which we can reimagine service and operating models to deliver solutions to wealth managers to address these challenges.”