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The Actuary The magazine of the Institute & Faculty of Actuaries

Wealth management back on the agenda

According to a new study, IT investment by financial companies in western Europe shows increased dynamism in the wealth management arena, as companies launch new initiatives after the capital market slump.

To understand how wealth management business will evolve in Europe, IDC has evaluated how financial institutions are setting up new services to adapt to the new market requirements. This analysis aims to identify key drivers for IT spending on wealth management solutions over the next year.

They found the following:

  • The wealth management business offers new opportunities due to a more positive market trend. The European countries with the biggest opportunities include Spain, Germany, and the UK.
  • Customer relationship management, risk management, and portfolio management solutions will still be a priority over the coming year. Also, profitability management solutions are increasingly critical because financial companies need to evaluate the real added value that wealth managers can offer.
  • 2004 will be a very important year in terms of regulation changes. The new rules related to risk management, anti-money laundering, and UCITS funds will alter the competitive landscape.
  • In an increasingly competitive environment, it will be important for IT companies to evaluate new IT requirements of wealth managers in order to maintain and enhance their positions in the market, which is seeing the first signs of recovery.

To find out more about how to obtain study detail, see www.idc.com.