Its latest white paper, The Transformation of Wealth Management, warns that current market dynamics present several challenges to firms including growing revenues, minimising costs and optimising capital allocations.
SEI says the global number of high-net-worth individuals grew at a rate of 8.3 per cent in 2006 to reach 9.5 million.
It adds that to become a trusted adviser and integrator to wealthy clients, wealth management organisations must transform their “fragmented” business infrastructure to an integrated, global relationship-orientated model.
SEI executive vice president of private banking Joseph P. Ujobai says it is clear that transformation of the traditional models is needed.
He says: “The ‘co-sourcing’ model that we’ve outlined in the white paper involves an unprecedented degree of collaboration, sharing and learning, not only between the wealth manager and their client, but also in the partnerships of wealth management businesses themselves.
“There is a need to look at whole processes rather than discrete functions. Fortunately, wealth managers already have two elements critical to success: their brands and existing relationships. With co-source partners, they can assemble the business infrastructure, products and services that will enable them to transform client relationships and become the trusted adviser and integrator for their clients.”