John Byrne of Information Mosaic explains the role that the firm plays in helping wealth management organisations across Asia tackle the various technology and systems solutions challenges they face.

Date: Mar 2012

Tags: Technology, Regulation

• There is an opportunity for a lot of players in Asia to quickly go from a situation of having very little infrastructure on the technology side of their businesses to having state-of-the-art systems
• Some of the challenges firms face relate to many of them being unclear about how to service clients effectively – plus, the number of compliance and regulatory issues are developing very quickly
• It is notable that many clients move wealth management firms more often for poor administration than for poor investment performance
• Firms must not only factor in the systems they have today, but also how these can cope with the significant regulatory changes that are coming from every direction

According to John Byrne in an interview, Information Mosaic is focused on capitalising on the growth in wealth and assets in Asia.

For example, over the last five years, he said the firm has incorporated in four markets in the region.

In addition to the current growth in assets, Byrne said he thinks there is an opportunity for a lot of players in Asia to quickly go from a situation of having very little infrastructure on the technology side of their businesses to having state-of-the-art systems. In line with this, there is a great willingness to innovate.

An evolving landscape in Asia

When looking at various opportunities across Asia, Byrne said he sees a lot of desire by the regional banks to try to be the best in their region.

That means offering proper infrastructure in terms of post-trade, he explained, because administration and service are key parts of the wealth management offering.

Challenges

Some of the challenges firms face, however, relate to the fact that many of them are unclear about how to service clients effectively in this new way, said Byrne.

In addition, the number of compliance and regulatory issues are developing very quickly, he added.

To tackle these challenges in the middle and back offices, Byrne said that in Europe, as an example, a number of organisations have decided that they needed to make such a big technology investment that they are instead outsourcing their middle- and back-office processes.

It is notable, added Byrne, that many clients move wealth management firms more often for poor administration than for poor investment performance.

Ultimately, he explained, wealth management firms need to be aware that change is now a constant in terms of reporting and post-trade operations.

In line with this, these areas of the business are going to become vital parts of the proposition to clients. And as a result, firms must not only factor in the systems they have today, but also how these can cope with the significant regulatory changes that are coming from every direction.