Asset & Wealth Management Webinar report
During a joint Dufas-PwC webinar on the 29th of April, insights and learnings were shared on how to remain resilient amidst the effects of the global pandemic.
In the early stages of the COVID-19 outbreak, the asset & wealth management sector was very much focused on responding to the crisis and stabilizing the business. Patrick Heisen, leader of the Asset and Wealth Management practice at PwC Netherlands: “Now we’ve reached a point to navigate the landscape of risks and opportunities. In order to do so, we need to have more insights in where the crisis will hit the sector. Obviously, looking at one’s own context is leading and may differ depending on whether you are a captive insurance asset manager, captive pension manager or global multi-client asset manager. As we do not know what will happen, making use of relevant scenarios is vital, depending on the context or the largest risks or opportunities that asset managers may face.”
Make, buy or ally? Manoël de Goeij, Partner Valuation, PwC Netherlands, gave an update on outsourcing and securing the future through right-sourcing strategies
COVID-19 has really put the light on business continuity and clients have been asking questions about this. “This is a good moment to have a hard look at your third-party risk management
framework. Is it up to speed, is it capable of dealing with situations facing your outsourcing partners in terms of business continuity? Another element is increased pressure on profitability and saving cost, so this is a good moment to have a look at your outsourcing strategy to make, buy or ally-decisions, also from the point of view of changing customer needs. Customers want more digital, more ESG, and possibly other assets. In other words, are your outsourcing partners ready to help address your changing customer needs?”
Manoël underlined the importance of remaining in control over all the operational processes and managing client expectations. When assessing the impact of COVID-19 on your outsourcing strategy there are three main considerations:
- Determine which core activities are considered strategic and what can be outsourced? “Think of outsourcing back office, fund accounting, custody, transfer agency or securities lending. Anything that is related to touchpoints with clients must not be outsourced.”
- Unlock operational efficiencies and reduce the cost base.
- Leverage large scale benefits
When partnering up, it is wise to consider the following success factors:
- Take the customers’ lens when designing and prioritizing new value propositions
- Build ecosystem deal capability, consistently scan for opportunities and diligently screen partners against clear criteria
- Develop an integration strategy and planning
- Develop a thorough financial plan
- Clear and timely communication with all the relevant stakeholders
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