Key takeaways
- 87% of wealth management executives are concerned about low-quality integrations.
- Flawless integration can reduce wealth management budgets by 27%.
- Sombra has experience integrating wealth management software for one of the world’s top 10 banks.
Sombra interviewed 20+ wealth management executives in the United States to identify their key pain points in 2023. 87% of wealth management executives complain about low-quality integrations.
For 7+ years Sombra has ensured high-quality integration among wealth management software for one of the top 10 world banks. We estimated that a seamless integration process can reduce wealth management costs by 27%.
Key elements that ensure flawless integrations in the wealth management process
CRM systems
Integrated solutions that remove manual data transfer:
Know your client
Investment policy statement
Compared to the traditional offline approach, online-created investment policy statements save up to 30% of the time in the wealth management process.
Online questionnaires help:
- Collect clients’ data
- Create risk profile
- Identify liquidity needs and investment goals
- Determine clients’ behavioral biases
- Create an investment policy statement
Asset allocation & rebalancing
Asset allocation is a significant component of the wealth management process. It is crucial to construct tailored portfolios based on clients’ characteristics. We at Sombra can develop software that covers any aspect of the asset universe.
Asset allocation software Sombra integrates with:
- Morningstar Investor
- Fidelity
- Axioma
- SimCorp
- Aladdin
- Internal systems of one of the top 10 world banks
In the case below, Sombra builds a superstructure to enable corridor-based and calendar-based rebalancing of the portfolios. The client’s portfolio is downloaded from the database and checked by two rules:
- Whether the assets stay in the defined corridors as in the investment policy statement;
- Should it be rebalanced according to the calendar rebalancing schedule.
Rebalance flow for our client — one of the top 10 banks in the world
Client portfolios are subject to different variables, including investment objectives, constraints, and preferences. When constructing a portfolio, our specialists consider that these factors must be correctly estimated and implemented to avoid a GIGO situation. Sombra ensures that our clients portfolios constructed via MVO and Black-Litterman approaches are of the highest quality.
Portfolio builder flow for one of the top 10 banks in the world
Trade Execution
A trade execution process focuses not only on operational aspects, such as placing orders, minimizing slippage costs, and reducing costs on a cost-based basis but also on infrastructure.
Our specialists understand that access to the necessary Electronic Communication Network (ECN) is crucial for effective trade execution. Sombra helps you integrate with the broker that has not only lower commissions and high execution speed but also access to the necessary infrastructure.
Client interactions
Software development and maintenance of a client portal:
- User-friendly interface
- Real-time quotes
- Market data and analysis regarding the portfolio and holdings
- Securities scanner and reports generator
- Client questionnaire
- Functionalities such as client search, account opening, and user management
Prototype of a client portal interface for one of the top 10 world’s bank
Personalized videos for enhancing financial advisors’ experience:
- Implementation of animation into code
- Video implementation from scratch
- Font styling, placements of text
- Back-end work with database to fetch personalized data for a particular customer
Video project flow for Sombra’s wealth management client in North America
Ready to enhance your client’s experience in the wealth management process? Book a call with us now.
Advisor platform
Monte Carlo simulation
If required, each asset class can be modeled with its own return and risk assumptions and its correlation with the returns of other asset classes instead of using a single portfolio return assumption.
Based on the large number of independent trials, wealth manager can aggregate the outcomes to determine the probability that a client will achieve a financial goal over the investment horizon.
Monte Carlo simulation has broad applicability including:
- Capital sufficiency analysis
- Scenario visualization
- Optimizing strategies
- Stress testing
Regulatory & compliance
Financial industry standards Sombra adheres to:
- Code of Ethics and Professional Standards (CFA)
- Global Investment Performance Standards
Want a reliable software development partner to ensure flawless integration in your wealth management process? Contact us today.
