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."