The smart approach to OpRes in wealth management
According to research, the wealth management sector lags behind other parts of the financial services industry when it comes to transferring business processes from on-premise servers to cloud-based platforms.?
But things appear to be changing, with 63 percent of wealth management companies last year stating an intention to move more workloads to on-demand computing infrastructure.
These are the findings of research and advisory consultancy Celent , which also predicts that cloud spending will see the strongest growth in any technology area between 2023 and 2028. And this includes Infrastructure-as-a-Service, Platform-as-a-Service and Software-as-a-Service.?
Clearly, an increasing number of wealth management firms are beginning to understand the benefits of joining the great skyward migration - and how it could actually support operational resilience objectives, while improving business performance
In fact, this is something our Founder and CEO, Anton Padmasiri , discussed during a fireside chat at the Global WealthTech Summit by FinTech Global in London on November 6. He made the following three points about cloud-based servers.
Cloud-based infrastructure offers a robust infrastructure platform
Firstly, siting your infrastructure on a system like Amazon Web Services (AWS) or Azure Consulting can add a layer of protection. For instance, AWS operates across a range of regions split into many zones. If one of the zones experiences an outage, another zone will immediately step in and resume service - all within a millisecond.?
It’s very rare that an entire region will suffer an outage, although not impossible.?
Secondly, the world’s largest marketplace (Amazon) is based on AWS. Think for a moment about the volume of attacks the system is likely to be exposed to every second of the day. For that reason, the system is continually updated to meet all new threat profiles - fast. And thankfully, AWS is accountable to regulators, meaning it shares financial businesses' commitment to operational resilience.
Thirdly, an on-premise server system nowadays feels like an incredibly expensive and time-consuming proposition. While you might have the expertise in house to build and manage servers, do you really want some of your most knowledgeable IT team members focused on this kind of task??
And can you really commit to them continually developing threat profiles to protect your system in today’s hyper connected world? It’s a silo approach that simply doesn’t make sense.
Why building an operationally resilient culture alongside the cloud is critical
Beyond commenting on the benefits of cloud-based server systems, Anton also told the session that businesses needed to think beyond technology to prevent cyber threats.?
He stressed the importance of fostering a culture of operational resilience throughout an organisation - in which each employee understands their responsibility for cyber security.
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The importance of tech vendor accountability
Another theme that emerged during the session was the need for tech vendors to be accountable.?
While WealthOS harnesses globally renowned cloud infrastructure, we appreciate that the buck stops with us when things go wrong. Our team also understands the need to communicate clearly with partners about technical challenges.?
Owning up to errors and cyber issues - and learning from them - is part of our approach to accountability. An approach that very much aligns with our philosophy on interoperability. That is, we? aim to ensure our platform can work well with external systems,? like yours.
At WealthOS, servicing clients is about so much more than a commercial undertaking. It’s about setting up a long-term collaboration based on trust. Operational resilience and accountability are key parts of this. And without them, partnerships are put at risk.
And finally… why the cloud makes good sense commercially
In addition to providing potential solutions to meet operational resilience and regulation requirements, cloud-based infrastructure offers commercial benefits - a point underscored by research.?
According to global management consultancy 麦肯锡 , cloud adoption could generate as much as $3tn in global value by 2030, with $612bn of new revenue coming from innovation-driven growth.?
McKinsey also says cloud computing is one of a number of technologies that "can help companies go through the phases of a digital transformation faster and more efficiently". This includes reduced time to market and simplified scalability.?
Indeed, having the flexibility to move quickly but safely with innovation enables businesses to stay ahead of the competition. Which is essential in an age where wealth management providers are coming under pressure to address the great wealth transfer as younger clients demand digitalised services.?
In fact, prior to the Global WealthTech Summit, we wrote about the convergence of operational resilience, regulation and the great wealth transfer. See our blog here.
But to learn more about how a cloud-based approach enables WealthOS to support its partners’ innovation ambitions securely, contact us today.
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