The wealth management sector faces a wide range of challenges when it comes to keeping up with digital transformation. On one hand, clients trust them with sensitive information that must be firmly safeguarded for the sake of brand reputation and compliance. On the other, the demands of information security mustn’t be allowed to stifle innovation in a sector facing so much competition from the surge of financial technology (fintech) startups.
Outsourcing IT is the perfect way to address these challenges. With the right partners, wealth management firms can reduce operational costs and boost profitability. They can quickly adapt to the needs and expectations of today’s customers, and outperform the competition. Selecting the correct IT partner is critical to their success.
One of the most important reasons to outsource IT is to achieve alignment between technology and business goals, which would be very difficult without the necessary in-house IT expertise.
When choosing an MSP, it’s critical that firms understand the difference between a service provider and a mere vendor. Your MSP should offer advice that meets business needs, rather than simply trying to upsell and cross-sell different products.
Backup and disaster recovery
While information security should be at the forefront of everything a wealth management firm does, it’s also important to remember that no system will ever be 100% secure.
That’s why all organizations need a documented backup and disaster recovery solution that’s part of a wider business continuity plan. This will mitigate the adverse effects of an incident like extended downtime, reputational damage, and potential breaches of regulatory compliance.
Security and compliance guarantees
The financial sector is one of the most heavily regulated sectors, and wealth management firms build their reputations on how they handle and protect customer confidentiality.
When a company outsources their computing workloads, compliance must extend beyond in-house IT to incorporate those hosted remotely or managed by a third party. These include both local and international regulations and, like you, your partners must also be fully compliant.
Financial stability is, naturally, one of the pillars of brand reputation for wealth management firms. But to set a good example, it’s also important that all their partners are financially stable too. If their MSP’s are in good financial health, then they’ll be better positioned to invest in the solutions their clients need to improve their businesses. Financial status is also a measure of a service provider’s ability to meet the demands of security and compliance.
Service provider location
Geographical location might not sound very important in these days of widespread connectivity and remote support, but wealth managers still need local expertise and support that they can count on. After all, there may be some occasions when a field manager needs to be called out to address more complex problems. MSP’s should have offices in every location the business serves. This will also determine their ability to comply with local regulations.
Wealth management companies are primarily concerned with critical factors that focus on user experience and customer acquisition. At the same time, they have unique security, privacy, and compliance concerns that need to be addressed from the outset.
Given the constant stream of disruptive developments in fintech, it’s imperative that any managed services provider (MSP) you choose understands your industry. You need to look for an MSP that not only has years of experience, but experience within the fintech space, serving companies similar to yours.
Arnet Technologies helps wealth management firms in Ohio make better investment decisions and grow their brands with smart technology solutions. Call us today to schedule a free demo.