Bank wealth managers are increasingly embracing open architecture platforms, a survey of 51 executives by SEI shows.

Today, only 8% of those surveyed offer proprietary products solely. A majority, 57%, offer a mix of proprietary and non-proprietary products, and an additional 29% plan to move to such a hybrid architecture.

Within the next 12 months, 85% of respondents said, offering additional open architecture options and expertise will be a top priority.

Forty-eight percent said their banks had decided to move to, or plan to move to open architecture to be perceived as free from conflicts of interest, and 28% said moving to such a platform enables them to focus more on client service.

But moving to open architecture doesn’t come without its challenges; 28% said the biggest obstacle is integrating the platform supporting outside products and services with internal sales, service and investment processes.

"The emerging wealth market presents a tremendous opportunity for [banks]," said Al Chiaradonna, head of global strategy and innovation for SEI's private banking and trust segment. "SEI believes that an open architecture investment solution is a key component in developing a strategy to capitalize on this opportunity."

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.