Hybrid Wealth: Are You Really Optimized To Get The Best From Digitization?

Christine Schmid, additiv, Head of Strategy, Zurich, 25 March 2021


DFS® system of intelligenc   
DFS® is available in the cloud or as a hybrid cloud set-up through Software-as-a-Service (SaaS), both as “out-of-box” and API-based “build-your-own-bank” delivery model. DFS® uniquely enables additiv customers to launch new propositions quickly such as Hybrid Wealth, while giving them the intelligence to maximize customer engagement according to their individual business and technology strategies. 

In the past, some large and more traditional institutions have often built their wealth management platform internally from scratch. Nevertheless, according to Forrester research, 52 per cent of those banks that built banking technology completely in-house missed their targeted timeline, and 45 per cent came in more than 25 per cent over budget. In particular, the burden of deploying basic infrastructure, designing client journeys and coding business logic and system logic was a major reason for project delays (81 per cent).  

These are sobering statistics, but they should not dissuade banks from developing in-house from the ground up, as long as they have the right foundation in place. At additiv, we are helping banks to do this, enabling Banking-as-a-Service to become a reality.  

Our clients can now access the same robust and trusted DFS® system of intelligence to “build their own bank” quickly. So, instead of us developing solution features directly for our customers, those banks who wish to manage this aspect in-house can utilise our tool kit of API modules. This enables them to easily build the functionality and client journeys themselves on top of a pre-defined, established foundation. And avoid those frightening Forrester statistics mentioned earlier. 

Sourcing and extending components this way reduces technical complexity significantly, and spreads the cost of R&D across external players. By utilizing our DFS® platform, it is far easier for banks to tailor these external components to their own brand and specific circumstances. It makes adaption to changing future needs far less onerous, removing the tendency to revert to big and costly start-from-scratch projects regularly. This frees up the bank’s own internal resources to work on building elements that are truly unique to their value offering. Now, if a bank chooses to build in-house, they can finally be truly digital. 

Enabling a bank platform model – toward Banking-as-a-Service   
So, for banks looking to build in-house, they can now become truly digital quickly without the risk of building the foundational wealth platform in-house. DFS® ensures optimum agility and intelligence to deliver the best customer experience at scale.  

It is a system which sits separately from customer channels, that can pull in data from multiple systems of record. Only such a system equips an institution with all of the information - contextual, financial, behavioral, risk-related, locational - that allows banks to understand the customer well enough to:

•    Present them with the functions that they need through a hybrid model;
•    Design the wealth management platform that their clients really want, on top through API components;
•    Understand clients sufficiently to offer meaningful advice and insight in an engaging way - at scale and at time and place where they can be a truly valued advisor;
•    Manage multiple customer segments e.g. execution-only, discretionary and advisory, for new-to-wealth to UHNW, and deliver contextualized and relevant content and experiences to each;
•    Grow their share of wallet with integrated prospect management and a rules engine to deliver compliant proposals and offers; and
•    Improve speed and service range by using APIs to quickly access services from third-party software providers or add specialist features that improve customer experience and loyalty.

Ultimately, it comes down to having a platform to adapt to changing client needs and the ability to create new models - the equivalent of a safe pair of hands to support you, regardless of your digital need. Isn’t that what digitization should be fundamentally about?

To learn more about how additiv is supporting financial institutions thrive within the digital age visit or email us at

This is a chapter from the 2021 edition of Technology Traps Wealth Managers Must Avoid. Click here to download your free copy.

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