Is your Data Secure on the Cloud?

With organizations increasingly reliant on cloud services, and vendors from multiple locations, to store and manage their data, it is essential to address concerns regarding the security of data stored in the cloud and the risks associated with outsourcing data services to vendors in different locations.

Storing data on the cloud can provide numerous benefits for wealth managers, such as improved accessibility, scalability, and cost-efficiency. However, ensuring the security of the data is of paramount importance for wealth managers who handle sensitive financial information.

Here are some key considerations regarding the security of storing data on the cloud for wealth managers:

1. Data Encryption:

Cloud service providers (CSPs) typically offer robust encryption mechanisms to protect data stored in the cloud. Wealth managers should ensure that sensitive data, such as client financial information and personal details, are encrypted both at rest and in transit. Strong encryption algorithms and protocols should be employed to prevent unauthorized access to the data.

2. Access Controls and Authentication:

Wealth managers should work with CSPs that implement strong access control mechanisms and multi-factor authentication (MFA). This ensures that only authorized individuals can access the data and perform administrative tasks. Implementing strong password policies, user role-based access controls, and regular access reviews is essential for maintaining data security.

3. Data Residency and Compliance:

Wealth managers often have legal and regulatory obligations regarding the storage and handling of client data. When selecting a cloud provider, it is important to consider data residency requirements and ensure that the data is stored in compliance with applicable regulations, such as GDPR, HIPAA, or industry-specific standards. Organizations should verify that the cloud provider can meet the necessary compliance requirements and obtain any required certifications or attestations.

4. Security Monitoring and Incident Response:

Wealth managers should choose cloud providers with robust security monitoring systems in place. Continuous monitoring helps detect suspicious activity or potential security breaches. Additionally, it is important to establish a well-defined incident response plan that outlines the steps to be taken in case of a security incident. This includes prompt notification of the wealth manager and appropriate authorities, as well as remediation procedures.

5. Vendor Due Diligence:

Performing due diligence on the cloud service provider is crucial. Wealth managers should assess the provider’s reputation, financial stability, security practices, and track record of maintaining data security. They should evaluate the vendor’s security certifications, audits, and compliance reports to gain confidence in their security measures. Businesses should consider engaging legal and compliance teams to review vendor contracts and ensure that appropriate security and data protection provisions are included.

6. Data Backup and Disaster Recovery:

Wealth managers should verify that the cloud provider has robust backup and disaster recovery mechanisms in place. This ensures that data can be recovered in the event of accidental loss, system failures, or natural disasters. Regular testing and validation of data backups and disaster recovery plans are essential to ensure the availability and integrity of stored data.

7. Employee Training and Awareness:

Wealth management firms should invest in employee training programs that raise awareness about data security best practices, including the proper handling and protection of sensitive client information. Educating employees on recognizing and mitigating security risks, such as phishing attacks or social engineering attempts, is vital for maintaining data security in a cloud environment.

Data stored on the cloud can be kept secure by wealth managers if the appropriate security measures are implemented. By selecting reputable cloud service providers, implementing strong encryption and access controls, ensuring compliance with regulations, conducting due diligence, and fostering a culture of data security, wealth managers can protect sensitive client data and mitigate potential risks associated with cloud storage. Regular monitoring, risk assessments, and staying updated with evolving security practices are also essential for maintaining data security on the cloud.

8 Checkpoints for Selecting your Wealth Tech Provider

A traditional approach to wealth management may not attract empowered investors to collaborate with you. The pandemic has changed investor perspectives, relationships and behaviours. To be taken seriously as a preferred wealth manager, your platform must provide investors with insightful information about their investments via AI (Artificial Intelligence) and APIs (Application Programme Interface).

Low fees, better performance, personalised service, broader product ranges, lower and transparent fee structures, and regulatory pressures, to name a few factors, have made the industry extremely challenging and competitive. The ability to mitigate challenges and provide a unique digital experience to clients is the key to success and growth.

Regulators such as FINMA in Switzerland, FSRA in the Middle East, MAS in Singapore and CSSF in Luxembourg recognise the value of digitising investment management practises in achieving their goal of investor protection. As a result, they require financial intermediaries to conduct pre-trade checks on the client’s knowledge, experience, and risk-taking abilities based on prior classification and profiling. While these pre-trade checks can be performed without the use of technology, they would be impossible to manage efficiently as the size of the business and the number of new clients onboarded expands. Regulations like these, combined with the need to improve operational efficiency, have prompted wealth managers, private banks, and external/independent asset managers to consider large investments in IT tools.

What are the questions you should be asking to make an informed decision prior to engaging a solution provider? Here’s a helpful checklist to use to support this crucial strategic investment:

1. How experienced is your business and who are your backers?

  • Are you a young start up? These businesses may be risky, immature, unprofitable and provide less functionality.
  • Are you an established company?  These organizations will have mature functionalities, profitable operations, legacy systems and less flexibility to adapt to new technologies.
  • New companies may be more attractive in their “Look and Feel” while older companies may have powerful engines and systems.
  • Knowledge coming from years of solution development, number of full-time employees, shareholders backing them and financial infusions may provide useful information in comparing with competitors.

2. Which markets do you operate in and how many relevant clients do you serve?

  • Solutions providers may have thousands of users within hundreds of clients in multiple locations. This information may be interesting but what is more important is how many clients such as yours are being serviced by these solutions providers and where.
  • This will help establish if you are in the solution vendor’s core business and market.
  • Hence ask for references to ascertain the vendor before committing for long term
  • System migration can be painful, and you would want to avoid doing that frequently.

3. How profitable are you?

  • Most wealth tech companies are not profitable. Developing new solutions is capital intensive, and can take years, before achieving the onboarding of client business sufficient to break even.
  • Some companies may not have business plans to be profitable as they operate in the low fee game to gain higher market share before cashing out either by selling to a bigger player (clients then shifting to the latter’s platform) or to a private equity firm (increase prices to optimise profitability).

4. Where are your development and support centre(s) located?

  • The wealth management industry requires extensive knowledge of banking operations. Hence, offshoring of development and support to countries with a lack of European banking knowledge and communication (English as a basic) can be detrimental to the selection of vendors in other geographies.
  • Therefore, knowledge of banking operations helps in developing functionalities related to your core business.

5. How strong is your connectivity and functional scope?

  • Connectivity is the key decision parameter in selection of a solution provider.
  • The more custodial connections and/or connections to data aggregators, to ensure most or all of the client’s portfolios in multiple custody banks are captured, will help in shortlisting the vendor for further engagements.
  • The latest trend in the EAM segment, which used to automate the download of data from banks to their PMS system, now automates the uploading of trading instructions from their PMS system to the bank mainly using FIX protocol.
  • Studying the functional scope of the project with the Wealth Tech company is paramount. As businesses evolve, complex solutions may be required to support new functions. The platform’s ability to be flexible in accommodating those scopes, rather than looking for newer systems and vendors, will ensure long term association.

6. How do you calculate performance – position/transaction based?

  • Core banking systems use transactions to calculate performance and position of a portfolio. Solutions for EAMs offer simple steps – replicating one to one the custody bank positions in their portfolio management systems and offer a picture that is exactly the same. This method is cheaper to implement.
  • This method has limitations in calculating performance contribution (TW + MW) and offers less flexibility on past modifications of portfolios.
  • It is therefore important to know the answers to these questions to take an informed decision on its implications.

7. Where do you host the client’s data?

  • Older Wealth Tech solutions still have physical onsite servers that generate high costs and security risk. Most Wealth Techs offer a Software as a Service (SaaS) solution by hosting on a public or private cloud.
  • Regulators in Switzerland in particular require data to be stored in the country and not elsewhere. Hence, the following needs to be verified before selecting a vendor: Evidence certificate, back up architecture and disaster recovery tests and location of the data (if the vendor is operating in multiple geographies).

8. How do you price?

  • Each Wealth Tech company has its own pricing modules which makes comparison difficult. Some charge based on AUM (Assets under Management) and some charge based on user licences.
  • It is therefore important to receive the complete cost structure (one time set up plus recurring costs) to analyse whether there are limitations which may increase the overall costs later. Therefore, a careful study needs to be done before taking the decision.

This eight point checklist will allow you to make informed decisions before contracting with a solution provider who you will be married to for many years.

How Wealth Advisors Can Manage Rising Costs, Digital Transformation and Client Expectations and Achieve Profitability and Growth

The wealth management landscape has shifted dramatically in recent years. Wealth managers are facing a new reality of rising costs, accelerating digital transformation and heightened client expectations for quality of service. But what do these challenges really mean for wealth advisors and how can they overcome them?

Rising Costs, Digital Transformation and Client Expectations

A host of factors are disrupting how wealth advisors operate as they grapple with rising threats to their business model and greater costs of doing business. These challenges stem from multiple sources including increased account aggregation, greater passive investment, the decline of fee minimums, cost inflation across technology, salary and other expenses, and a global regulatory push towards transparency, suitability and lower fees.

As costs are rising, so are client expectations. Clients are seeking both, higher returns through alternative investments and sophisticated investment risk mitigation and diversification in a challenging and unpredictable world. They are also demanding a seamless, convenient and personalised client experience. Increasingly, they expect this to be delivered through a hybrid of in-person and virtual engagement, often across multiple jurisdictions and geographies. Additionally, environmental, social and governance (ESG) investing is firmly on the radar of most clients. They are frequently considering ESG factors alongside traditional financial metrics to invest in a sustainable and responsible way.

Consequently, wealth advisors are facing increased client expectations for high-quality service, broader product offerings and sophisticated investment advice at a time when business cost and complexity is rising.

Technology Drives Profitability and Growth

Advisors are leveraging advanced technology to adapt their strategy and operations to this new reality. This can help them deliver the intuitive digital experience investors seek, provide a broad range of sophisticated products and services, and enhance the quality of investment advice. Crucially, it enables them to provide this improved offering while also enhancing operational efficiency and reducing cost.

For example, advisors are investing in enhanced data management to aggregate, standardise and harmonise data across multiple custodian, broker, currency and product data sets. This ensures data is available in the correct place and format for investment analysis, portfolio management, portfolio reporting and client service. They are enhancing the monitoring of portfolio insights, building holistic views of assets across portfolios, implementing advanced attribution and visualisation capabilities, and using open APIs for upward and downward integrations and to scale and expand. With the right technology, they can do all this while maintaining effective oversight, control and cost efficiency.

Achieving Business Results as Pressures Mount

In this challenging environment, the pressure is mounting for wealth managers to improve business performance and competitive advantage and deliver superior digital services and investment outcomes for clients. A technology-driven wealth management approach is crucial for wealth advisors to remain profitable and deliver sustained growth in a fast-changing market.

For more information about Valuefy’s wealth management technology solutions please contact us.

Get in touch to arrange a meeting to explore these themes in more detail and discuss our insights in wealth management technology.

About Valuefy

Valuefy is a premier investment technology lab with cutting-edge solutions serving leading financial institutions across the globe. Its Wealth Management Solutions has enabled Wealth Managers globally by providing production-grade investment technology solutions for an uberized customer experience.

Open API Opportunity for Wealth Managers and Family Offices

The open banking movement, and the use of open APIs, has the potential to revolutionise the way businesses operate in the wealth management industry. Wealth managers can leverage open APIs to unlock a myriad of opportunities. These include expanding their service offerings, streamlining operations and driving growth.

Advisors that become early adopters of open banking practices, and invest in the commercial opportunities of open APIs, will play an integral role in the future of wealth management technology.

Enhanced Connectivity

With wealth increasingly spread across multiple banking relationships, custodians and jurisdictions, enhanced connectivity is essential to success, for both advisors and their clients. Open APIs enable wealth managers to connect their systems with external platforms, such as banks, custodian data centres and other financial institutions, in a seamless and secure manner.

Enhanced connectivity allows for real-time data exchange, enabling wealth managers to access and analyse financial data more efficiently. For example, advisors can leverage open APIs to retrieve data on clients’ financial accounts, transactions and holdings directly from a custodian’s system, eliminating the need for manual data entry and reducing the risk of errors.

For wealth managers and family offices, tracking and controlling bankable assets is critical, especially in volatile markets. Better connectivity not only saves time and effort but also provides wealth managers with a holistic view of their clients’ financial information. This enables them to track strategic and tactical asset allocation more effectively and facilitate better investment decisions.

Customised Client Experiences

Open APIs empower wealth managers to deliver customised client experiences by integrating third-party applications and services into their wealth platforms. Wealth managers can use open APIs to provide clients with access to a wide range of financial tools, such as financial planning calculators, risk assessment tools and investment research platforms.

Additionally, wealth managers can leverage open APIs to integrate with other financial service providers, such as tax advisors, estate planners and insurance providers, to offer comprehensive private wealth management solutions to their clients.

By offering these tools within their own platforms, advisors can create a seamless and integrated experience for their clients, enhancing overall client satisfaction and loyalty.

Expanded Investment Opportunities

Open APIs unlock access to a broader range of investment opportunities and enable advisors to connect clients with multiple wealth platforms. These include robo-advisors and alternative investments, such as private equity, venture capital, hedge funds and real estate, which were traditionally only available to institutional investors.

This expanded access allows wealth managers to offer a more diverse and sophisticated investment service. Not only does this enable advisors to enhance the diversification of client portfolios and access greater returns, it also provides advisors with additional revenue streams through fees and commissions.

Operational Efficiency

Wealth managers can use open APIs to streamline operational processes, such as client onboarding, portfolio rebalancing and trade execution, which drives improved efficiency and cost savings. For example, open APIs can be used to automate the process of rebalancing clients’ portfolios based on their investment goals and risk tolerance, ensuring that their portfolios are aligned with their financial objectives, and automate trade execution to reduce the time and effort required to place trades manually.

Improved operational efficiency through automation not only reduces manual errors but also frees up wealth managers’ time to focus on more value-added activities, such as client relationship management and investment strategy.

Collaboration and Innovation

Open APIs foster collaboration and innovation among wealth managers, financial technology companies and other stakeholders in the financial ecosystem. Wealth managers can collaborate with fintech companies using open APIs to develop and deploy innovative solutions to enhance their services and meet the evolving needs of their clients.

Collaboration through open banking is gaining traction in the wealth management community. For example, The OpenWealth Association in Switzerland was formed to enable collaboration between custodian banks, wealth management technology providers and API service providers to develop, maintain and distribute standardised APIs for the global wealth management industry. With rapid adoption in Switzerland, OpenWealth’s standardised practices are driving true collaboration in the ecosystem of custodian banks, independent asset managers and wealth tech providers.

Wealth managers and family offices stand to gain from this new wave of collaboration. They can access banking services cost-efficiently, and serve their clients effectively, without a lock-in on custody banks. They can also connect to an ecosystem of wealth management technology providers with offerings that go beyond financial services, for example mobility, healthcare, education, entertainment, concierge services and real estate. This paves the way for the growth of financial super-apps that combine banking, private wealth management and other services in an integrated way and in one place. Collaboration and innovation of this type enables advisors to keep their offerings fresh and relevant, deliver an increasingly comprehensive service and stay ahead of evolving client needs.

An Open Banking Future

The exchange and management of data through openly available APIs has the potential to transform the private wealth management industry. As open banking becomes increasingly mainstream, advisors can harness its opportunities to drive enhanced service, greater operational efficiency and accelerated business growth.

For more information about Valuefy’s wealth management technology solutions please contact us.

Get in touch to arrange a meeting to explore these themes in more detail and discuss our insights in wealth management technology.

About Valuefy

Valuefy is a premier investment technology lab with cutting-edge solutions serving leading financial institutions across the globe. Its Wealth Management Solutions has enabled Wealth Managers globally by providing production-grade investment technology solutions for an uberized customer experience.

5 Reasons Wealth Managers need a Technology Partner

Maybe you are a veteran Wealth Manager, a rookie or somewhere in between. Being in the industry, you must have heard about the disruptive technologies that are changing the sector of Wealth Management.

Well, the news is true as Wealth managers around the world are partnering with Fintech companies to adopt innovative technology solutions. It’s improving the efficiency and productivity of their firms and driving their performance.

Let’s take a look at the 5 major reasons why a Wealth Manager needs a technology partner.


One of the biggest advantages of technology is automation. Technologies like Big Data, Analytics, and AI are offering real-time data, easy access to information, and faster report generation which cuts down the time taken for decision making.

Automation in Wealth Management allows you to finish time-consuming tasks, like generating portfolio insights and reports, in minutes. It enables smoother operations making your job a lot easier. A ROBO assist platform aids Wealth Management in generating portfolio insights and collecting data in an organized way that also leads to a reduction in costs.

Customer Relationship Management

Customer relationship management is at the heart of a successful Wealth Management firm and it can be enhanced using user-friendly technological solutions that provide both ease and accessibility to the portfolio and analytics.

A technology platform, like Wealthfy, adds convenience to processes like Client Onboarding, Portfolio Construction, Portfolio Monitoring, Reporting, Analytics, and Rebalancing. Providing customers with on-demand analytics is another feature that can prove to be very inviting for a wealth manager.

Data Analytics

Wealth Management is built on data. Analyzing and studying historical and real-time data is a crucial part of making decisions that drive returns. Technology platforms perform these functions quickly while increasing the productivity of Wealth Managers.

Solutions that provides analysis of different classes of Assets in a portfolio helps you decide on the expected returns and risk factors of various assets under one platform. Moreover, these platforms support different styles of portfolios, widening their functionalities.

Multichannel Delivery

Smartphones have helped in garnering a deeper penetration across the market. The company-customer relationship has become more personal, making it easier for customers to reach out to the companies more easily.

This has increased the expectations of the consumers who now want to have multiple delivery channels to stay updated on the go. Effective mobility solutions can make this possible by integrating mobile-based solutions into the legacy systems at the Wealth Management firms allowing your customers to keep track of their portfolio and receive prompt alerts.


 When you customize your platform for your workflows, you make its adoption easier for your customers. It helps you customize advisory and recommendations based on the goals set by the client. This individualistic approach provides a personalized service without taking much time.

Why is the Technical Evolution Welcomed?

The world is changing faster than ever before and this evolution does not intend to cease. Catching up with intelligent technological solutions will only enable you to serve your clients faster and with more precision.

Today’s Wealth Managers are seeking intelligent technological solutions that understand their requirements and aid in bringing down costs, time and an increase in their productivity. Overall help them predict better that in turn help them service their client needs better.

Valuefy is a FinTech company that enables Wealth Managers with technological solutions to ensure the digitalization of their processes and empower them with comprehensive analytics, Portfolio Management solutions, reporting, and relationship management.

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