NorthStar Systems International Inc., a provider of wealth management software, today announced the results of one of the largest and most comprehensive surveys on wealth management trends in North America.
The survey is based on feedback from all wealth management segments. NorthStar’s online survey was distributed to its 5,000-member wealth management community, representing the diverse population now competing not only for high net worth investors traditional players such as banks, trusts, multi-family offices, and broker-dealers but also emerging providers such as insurance companies, hedge funds and registered independent advisors. NorthStar reported over 160 responses from all segments.
“NorthStar conducted the survey to gain insight into 2008 industry, firm and technology trends in wealth management. The vast majority of firms expect continued double-digit growth in 2008, indicating wealth management is a vibrant, healthy business even in these volatile times,” says Collin Cohen, president, NorthStar.
Wealth management firms cited many issues as major challenges. The top two were client acquisition and competition for wealth managers, with client retention and more demanding clients tied for third. In fact, respondents ranked nine challenges as major, suggesting the wealth management industry is undergoing a significant transformation.
Although 65% of respondents said their firms are doing well or very well relative to the industry, they voiced concern about how they will be able to support their business operationally. With 75% of respondents saying they are somewhat or very frustrated with their current software tools, over 88% agree or strongly agree that “a strong wealth management platform is critical to growing a financial advisory practice” in 2008.
“When it comes to investing for growth, the majority favor an integrated advisor desktop as their primary technology expenditure this year. Respondents demonstrated a clear preference for a wealth management platform, ideally one fully integrated to their existing CRM system, in order for advisors to provide holistic advice and firms to achieve profitable growth in this challenging 2008 market,” adds Cohen.