*POWERING THE ASSET AND WEALTH MANAGEMENT CONVERGENCE*
of professional investors agree that tech plays more of a role in their firm’s differentiation and success than five years ago.*
*Source: Reuters/Aladdin Brand Image Survey 2024
Consolidation. Increasing regulatory requirements. Cost and distribution model pressures. Broader client segment demands.
Against this backdrop, the lines between asset and wealth management (much like that between public and private asset classes) continue to blur, prompting organizations to seek innovative ways to scale their businesses and personalize solutions and services.
Those who can align their architecture across manufacturing and distribution are positioned to tap into more growth and efficiency.
Today, traditional banks and wealth managers are sharing the market with digital platforms and direct-to-consumer businesses that offer engaging user experiences and customized investment solutions. This has created a crowded and competitive market for retail customers.
While these traditional players have the advantage of product breadth and experience in delivering exceptional client service to high-net-worth individuals, through technology, they have an opportunity to further differentiate themselves against digital platforms by providing these discretionary and advisory programs to the masses.
In this context, captive asset managers benefit from expanding the reach of their in-house products to the retail customer segment, capturing market share where appropriate and beneficial for the investor—and always operating within the boundaries of the suitability framework—thus creating new opportunities for revenue uplift for the entire business.
INNOVATIONS
End-to-end investment lifecycle management & seamless model distributionAladdin WealthTM connects SAA, TAA, and models—typically managed in Excel or other systems—with the portfolio management platform, providing a comprehensive solution that integrates and streamlines the entire investment management process across all stages.
We centralize all models in one place, allowing advisors to easily access, review, and use them in portfolio construction or as a foundation to create their own models, thereby scaling portfolio management efforts across their client base.
Enhanced transition analytics for wealth advisorsThe Aladdin Wealth platform furnishes advisors with dashboards to identify accounts that are ideal for transitioning to discretionary programs. We support automated security overlap and fee structure comparisons to help advisors make compelling, data-driven pitches to clients.
GenAI on Aladdin WealthThe auto-commentary feature provides advisors with a first draft of portfolio insights incorporating firm market views, helping them demonstrate value quickly while reducing prep time. By embedding these views, central offices can efficiently distribute insights, ensuring consistency across advisor-client conversations.
Expanded capabilities include news-driven portfolio insights to help advisors deliver timely, relevant client discussions, and book-level analytics to support advisors and senior managers in tracking key KPIs and identifying the next best action.
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LISTEN NOW:MORGAN STANLEY:THE INVISIBILITY OF THE ENGINEChris Scott-Hansen (Morgan Stanley) & Woo Fung Kwong (Aladdin)
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A connected technology platform across the organization powers this convergence and unlocks the possibility for new levels of personalization, expanding historically resource-intensive services—once only available to ultra-high-net-worth individuals—to more client segments. In this way, firms can deliver customized investment proposals, including private assets, to a much wider audience—to deliver a true whole portfolio view.
Furthermore, integration of asset and wealth management workflows allows organizations to standardize and reconcile technology across their platforms. When these functions talk to each other, they can uncover greater efficiency and cost savings. This approach creates a seamless flow of information underpinned by a common data language, enabling better decision-making and improved client outcomes.
Connected technology also allows asset and wealth managers to establish a holistic risk backbone across the entire organization and provides consistency in portfolio construction and analysis. The combination of consistency and access to data empowers portfolio managers with the tools to better assess client preferences—and design new and innovative investment solutions that are truly fit for the needs of their customers.
As mentioned, regulation is another big driver (and challenge) in this space, with asset and wealth managers both having to navigate increasing complexity across jurisdictions. By configuring regulatory checks directly within a unified technology platform, firms can consolidate their approach to compliance across the organization and ensure their products and proposals are suitable, simplifying the reporting process and providing greater transparency.
As we continue moving further into this new era of investment and portfolio management, technology is enabling organizations to dissolve the traditional walls between asset and wealth operations. Combining these elements into a cohesive operating model enables firms to transform through tech across business lines—taking advantage of market opportunities, engaging clients with greater impact, and leaning into what differentiates their firms on behalf of the end investor.
