A recent survey conducted by business outsourcing and research company Equiniti, found that a majority of wealth managers are hoping to outsource various parts of their businesses in the next 5 years, writes Holly Parmenter.
The survey, made up of 60 wealth managers, found that 70% of its participants were ‘looking to restructure their business by outsourcing some or all of their processing requirements’.
This is mainly due to the mounting pressures and costs of regulation as the survey found that 38% of wealth managers have changed their view on outsourcing as a result of regulation.
Only 12% of wealth managers see outsourcing as a means of developing strategic advantage.
Back office tasks were the most likely to be outsourced as 50% of the wealth managers surveyed said the custody of assets were already outsourced.
A fifth of wealth managers blame a lack of outsourcing solutions as an argument for not outsourcing.
Mark Taylor, managing director of Equiniti, said: "Wealth managers have to reconsider the structure of their businesses as a result of regulation and other factors, such as changing consumer demand."