NorthStar Systems International publishes results of first WM trends survey. Although 65% of respondents to a survey of wealth managers by front-office technology aggregator NorthStar Systems International say their businesses are doing well, many say that things on the operations side need shoring up.

Three-quarters of respondents to NorthStar SI's first Wealth Management Trends survey are frustrated with their software tools, and around 88% think that "a strong wealth management platform is critical to growing a financial advisory practice," NorthStar SI says in a press release.

As luck would have it

"NorthStar conducted the survey to gain insight into 2008 industry, firm and technology trends in wealth management," says NorthStar SI's president Collin Cohen. "The vast majority of firms expect continued double-digit growth in 2008, indicating wealth management is a vibrant, healthy business even in these volatile times."

NorthStar SI polled 5,000 wealth managers based in banks, trust companies, multifamily offices, broker-dealers, hedge funds and RIAs -- from which it was able to glean at least 160 responses in each survey category.

The top two issues cited as major challenges were client acquisition and competition for wealth managers. Client retention and customer demands came in tied at third.

"When it comes to investing for growth, the majority favor an integrated advisor desktop as their primary technology expenditure this year," says Cohen. "Respondents demonstrated a clear preference for a wealth management platform, ideally one fully integrated to their existing CRM system, in order for advisors to provide holistic advice and firms to achieve profitable growth in this challenging 2008 market."

And, as it happens, that's just what NorthStar SI sells.

In 2008, the survey shows that firms will focus on holistic growth for customers and business. High-net-worth investors will be looking for holistic advice from wealth managers as opposed to traditional benchmark-oriented approaches by sales-oriented advisors. NorthStar SI says it's going to make its Trends survey an annual event. -FWR

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