London, 29 March 2022
Wealth Managers Embracing Outsourcing Outperform
Titan Wealth Solutions, a Titan Wealth Group company, has today published the findings of a report assessing the impact of outsourcing on a wealth managers’ scalability and profitability. Entitled “The link between outsourcing, profit and scale” this report, which was compiled by Compeer, a data provider to the wealth management industry, finds that over the past five years wealth managers with an outsourcing model have outperformed those which retained their in-house technology and operations infrastructure, both in terms of assets and revenue growth.
According to the report, when asked about the benefits of an outsourced business model, 83% of wealth managers who participated believe outsourcing can provide a strategic advantage. By providing business expertise and specialist technology and in allowing the wealth manager to focus on value-added services for the end client without distraction by administrative tasks, outsourcing provides both cost and operational efficiencies. The report also suggests a reticence on the part of wealth managers to fully embrace outsourced solutions and to reallocate resource away from traditional in-house cost centres which are driving up costs.
Additional findings include:
Tom Wooders, Group Head of Sales at Titan Wealth said: “Our report clearly highlighted the appetite among wealth managers, post-Covid, to embrace the benefits of outsourcing in terms of digital technology innovation, and increased productivity via end-to-end process automation. Selecting an outsource partner who can offer ease of integration and an appreciation of the wealth manager’s business imperatives are now seen as key to achieving future scalable business growth.”