In today's world of ever increasing competition among investment advisors and greater sophistication of their clients, you need to find innovative ways to keep your competitive edge and grow your business. One way to do so is to have a solid understanding of each client's complete financial picture which can be achieved with consolidated, holistic reporting.
A recent report published by the independent research firm Aite Group noted that, "providing holistic wealth management is a key differentiator for financial advisors, allowing them to address clients' needs and goals in a holistic manner while establishing a closer relationship with the client."
An advisor would have been selected to advise clients on a significant percentage of their investable assets. However, wealthy clients tend to have multiple banking and investment relationships. What about their other funds? Where and what are they? Shouldn't these investments be included in the client's asset allocation?
Wealth managers could move to a new level of "trusted advisor" by providing clients with a complete view of their financial picture.
Clients expect the information they want when they want it in a form that fits their needs. At the same time, you face the challenges of meeting client demands and growing assets under management. The ability to report on the totality of a client's wealth is a critical differentiator for growing an advisory business serving the high and ultra high net worth market. Also noted by Aite, "... the burden of holistic wealth management without the necessary technology support will do more harm than good."
Meaning, without the necessary technology the operational requirements of holistic wealth management could cause your costs to skyrocket. Today's technology gives advisors the means to gather and process the data necessary to offer clients comprehensive, consolidated reporting. Yet many advisors still report on only a subset of their clients' assets despite these advancements.
Advent has authored a white paper that outlines seven steps to successful consolidated reporting.