According to a new IDC 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.
This is partly reflected in the IT industry, as there is increasing attention on solutions to support financial companies in enhancing customer relationship and automating operations. "However, we are still in the initial phase of this process and only first movers are really committed to exploiting the new opportunities arising from a clearer business environment," said Mirko Corbetta, research analyst with IDC's European Vertical Markets research group.
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.
Among the findings
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 U.K.
· CRM, 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 value-add 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.

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