• About Us
  • Careers
  • Contact Us
Private Wealth SystemsPrivate Wealth SystemsPrivate Wealth SystemsPrivate Wealth Systems
  • Solutions
    • Account Aggregation
    • Data Management
    • General Ledger Accounting
    • Performance Calculation
    • Portfolio Management
    • Client Reporting & Portal
  • Who We Serve
    • UHNW Wealth Owners
    • Chief Investment Officers
    • Accountants
    • Data Operations
    • Wealth Advisors
  • News & Resources
  • Contact Us

Re-Defining Client Reporting

By admin | Articles | Comments are Closed | 15 October, 2015 | 0

For decades client reporting was defined by its role as a back office burden with a singular purpose of meeting regulatory requirements.

However,  client reporting  has evolved to become the most powerful communication  medium that binds the investor/advisor relationship. This shift in purpose is driven by  the most foundational element of the human condition, the quest for knowledge. It is our collective need for knowledge that is forcing the redefinition of the industry’s intended purpose – to provide meaningful, relevant, actionable intelligence with transactional level transparency. Leading this transformation is a new breed of reporting platforms that remain committed to the cause of transparency, clarity, and personalization at a level that was unimaginable even a  year ago. This next generation of client reporting will, by its very mandate, democratize information and establish a new equilibrium of power that will be shared by – and benefit – both investors and advisors alike in the growth and preservation of $52trn in global private wealth.

The client reporting industry’s inflection point was driven by the 2008 financial crisis when the lack of instantaneous  access and understanding, for both investors and their advisors, created a crisis in confidence across the financial ecosystem. Basic questions including; what is an investor worth across all of their managers and asset classes, what risk did a specific investor or group of investors have to a single security, custodian, country, strategy, style or asset class, or simply which managers performed well and which did not, remained unanswered. Worse yet,  the more complex the wealth the more opaque the answers remained.

CLIENT REPORTING HAS EVOLVED TO BECOME THE MOST POWERFUL COMMUNICATION MEDIUM THAT BINDS THE INVESTOR/ADVISOR RELATIONSHIP

CRAIG PEARSON, CFA, PRIVATE WEALTH SYSTEMS

LOOKING FOR ‘THE ONE’

The promise of consolidated reporting is to have a single instantaneous view of all key performance indicators that identify what is driving risk, return, income and expense across complex portfolios; capturing, consolidating, cleansing, calculating, and presenting data that  takes into consideration all transactions in all accounts across all custodians, managers and sub-managers – regardless of asset class, country or currency.

However, the search for the one platform that fulfills this promise is continuous and evolutionary. In January 2015 the  reporting industry begun its third evolution, which is already showing great promise in fulfilling its mandate as domain expertise, capital, and driving market needs come together to support the prolific complexity that advancements in global financial markets  continue to produce.

The first generation of  consolidated reporting platforms, built between 2000 and 2010, were born out of an immediate need to provide a complete wealth report for a single client or small group of client accounts. These platforms were focused on creating summary reports for client meetings and not the technology or the business processes to produce those reports.

Based on limitations in technology at that time, these first generation platforms forced users to perform shadow  accounting, duplicating the data and efforts of their client custodial systems of record. Unfortunately, any redundant process by its very nature drives costs up, drives data quality down, and extends delivery times to unacceptable levels. The purpose of consolidated reporting is to provide actionable intelligence, but receiving a report weeks or months late with errors renders those very reports meaningless or even harmful. This is why the first wave of consolidation among first generation  platforms has begun.

Second generation platforms, built between 2010 and 2014, approached the problem with a greater focus on user design and scalable technologies, and less so on data quality. Although these platforms can scale, the foundational elements of second generation platforms were not built by individuals with  domain expertise, and as such these systems often produce data that is not accurate. Participants across the private wealth industry continue to state that design is a “nice to have,” but if the data isn’t accurate it renders the platform unusable. Many believe second generation platforms will either seek consolidation or redeploy their technology in adjacent areas of the financial services industry.

This new, third evolution of client reporting platforms, which are just now coming to market, is a more evolved   and learned approach to bringing true transparency and actionable intelligence to those who need it most. With the maturation of account aggregators capturing data is no longer manual or difficult. It is the processing, cleansing, calculating, and presenting of that data that determines success or failure. Of noted importance, these new reporting platforms are designed by those who possess  dominant domain expertise in data structure, data processing and core calculation logic. These platforms differentiate themselves by using refined calculation logic that produces superior data quality on a consistent basis, a unique data model that supports a level of personalization that before now was unimaginable, and an elegant distinctive design that is reflective of its sophisticated user base. These platforms not only support complex ownership structures and investment instruments, but they re-imagine the definition of transparency by enabling each individual, whether investor or advisor, to create custom attributes  across securities, accounts and entities so wealth can be managed based on how each individual views their financial universe. This capability impacts asset allocation models, risk analysis, planning and general advice, allowing advisors to not only communicate but also illustrate their strategy and differentiation based on the personalized advice they provide to each individual client. Of equal importance, this third evolution is leveraging advancements in technology to scale their systems to support all levels of wealth, including complex family offices and millions of less complex mass affluent clients – a single solution to meet the varying needs of today’s wealth managers.

PRESERVING WEALTH

By re-defining the very purpose of client reporting, this new  next generation of client reporting platforms will fulfill their promise and hold true to their bedrock belief that all investors, regardless of complexity, will have instantaneous  access to accurate, comprehensive, timely, and personalized information. Client reporting remains focused on becoming the enabling technology that facilitates elevated and informed communications between investors and their trusted advisors to  help preserve the very wealth they have spent a lifetime to build.

No tags.

Related Post

  • Socially Responsible Investing (SRI): Reshaping Private Wealth Management

    By Craig Pearson | 0 comment

    Social investing has become a universal theme, yet the practical application remains as personal as the individual.  Where one investor may demand the exclusion of fracking from all of their portfolios, another investor may wantRead more

  • Q&A with Craig Pearson, Co-Founder & CEO at Private Wealth Systems 2016

    By admin | Comments are Closed

    Q. We’d love to hear more about Private Wealth Systems and your role as co-founder and CEO? Private Wealth Systems is a global financial technology company that is focused on transforming how high net worthRead more

  • Private Wealth Systems Enters EMEA with Key Client Win

    By admin | Comments are Closed

    Client Win Reinforces Private Wealth Systems’ Leadership Position in the Private Wealth Industry

  • Private Wealth Systems Shortlisted for “Best Client Reporting” Award by Family Wealth Report (FWR)

    By admin | Comments are Closed

    Recognition based upon Private Wealth Systems’ leadership in reshaping the future of private wealth reporting. CHARLOTTE, N.C., December 1, 2016 – Private Wealth Systems, Inc., a global financial technology company that provides financial software andRead more

  • Private Wealth Systems Named “Top Financial Technology Company to Watch” by American Banker and the Bank Administration Institute

    By admin | Comments are Closed

    Ranking based on Private Wealth Systems’ leadership in reshaping private wealth industry CHARLOTTE, N.C. –Private Wealth Systems, Inc., a global financial technology company that provides financial software and data management services to high net worthRead more

  • Private Wealth Systems Recognized as one of the Fastest Growing Tech Companies

    By Craig Pearson | 0 comment

    Family Offices Seeking Investment Oversight and Lower Operational Costs turn to Leading FinTech Company for Total Financial Control Charlotte, N.C. – Private Wealth Systems – the industry leader in delivering multi-asset, multi-manager, multi-currency consolidated financialRead more

  • Private Wealth Systems Launches Industry-First Digital Ecosystem for Family Offices, Selects Tapestry as First Partner

    By Craig Pearson | Comments are Closed

    CHARLOTTE, N.C., Nov. 1, 2018 /PRNewswire/ — Private Wealth Systems, Inc. – an innovator in delivering financial intelligence and oversight to family offices across the globe, has announced Tapestry, a leading provider of lifestyle management services for non-financialRead more

  • Private Wealth Systems Adds General Ledger and Bill Pay Solution to its Digital Ecosystem for Family Offices

    By Craig Pearson | Comments are Closed

    CHARLOTTE, N.C., March 19, 2019 /PRNewswire/ — Private Wealth Systems, Inc. — a global financial technology company that provides investment intelligence and active oversight to family offices around the world, has announced My Accountant, Inc. a leadingRead more

Archives

  • April 2020
  • March 2020
  • January 2020
  • September 2019
  • August 2019
  • May 2019
  • March 2019
  • November 2018
  • October 2018
  • December 2016
  • April 2016
  • November 2015
  • October 2015
  • August 2015

Categories

  • Articles
  • News
  • Press Releases

Recent Posts

  • Top Reasons Why Your Data Is Failing You
  • The Keys To Choosing Family Office Technology in 2020
  • Private Wealth Systems Selected as a Finalist for Global FinTech Challenge
  • Private Wealth Systems Adds New In-Focus Feature to its Portfolio Management and Reporting Platform
  • Private Client Resources (PCR) and Private Wealth Systems Partner to Expand UHNW Offerings

Private Wealth Systems is a global financial technology company that is solving the financial industry’s structural challenges of data, scale, and security in order for those who manage complex investment portfolios to have the information they need to make the most informed decisions. The Company’s private cloud suite of multi-asset, multi-manager investment software includes account aggregation, data reconciliation, performance calculation and client reporting that supports even the most complex global balance sheets.

Links

  • Who We Serve
  • News & Resources
  • About Us
  • Contact Us
  • Careers
  • Watch a Demo

Recent Posts

  • Top Reasons Why Your Data Is Failing You April 10, 2020
  • The Keys To Choosing Family Office Technology in 2020 March 19, 2020
  • Private Wealth Systems Selected as a Finalist for Global FinTech Challenge January 8, 2020

Contact Us

106 Langtree Village Road, Suite 301
Mooresville, NC 28117

Email
info@privatewealthsystems.com

Phone
+1 (980) 500-3000

©Private Wealth Systems 2019. All Rights Reserved | Privacy Policy
  • Solutions
    • Account Aggregation
    • Data Management
    • General Ledger Accounting
    • Performance Calculation
    • Portfolio Management
    • Client Reporting & Portal
  • Who We Serve
    • UHNW Wealth Owners
    • Chief Investment Officers
    • Accountants
    • Wealth Advisors
    • Data Operations
  • News & Resources
  • About Us
  • Contact Us
  • Watch a Demo
  • Careers
Private Wealth Systems

Responsive Tabs

You can choose responsivetabing from dropdown.


Example : white-responsivetabing


    Cancel
We use cookies to improve your experience. By using our website you consent to all tracking cookies in accordance with our Privacy Policy.Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.