A recent study acknowledged that the future of wealth management lies in cloud technologies and web-based services. We can easily agree, but it’s actually not the future – it’s the present. The traditional model of buying an expensive license and then using the same software for ages feels hopelessly outdated. Trying to stay on top of new technologies, regulations and customer needs is inefficient, if not impossible, with the traditional on-premise model. In an environment of rapid change, you need a flexible platform to build your business on.
Sometimes it might be hard to take the leap from the old, well-known and “tried-and-tested” solution to this decade. In this blog post we address the most frequently pointed issues in the differences between traditional and cloud software platforms from a business point of view. And if you’re not sure what all this cloud talk even mean, check out our previous blog post.
Focus on core business is one clear benefit of switching to cloud technology. An asset manager is an asset manager, not an IT expert. With an on-premise installation you may initially make do with one IT guy, but as your business grows, so grows the size of your IT department. Why should you hire IT personnel if IT is not your business? With a cloud solution the only IT you need is an internet browser.
Data & Information Security seems to be one of the biggest concerns when it comes to cloud computing. Many believe that cloud is vulnerable, which is incorrect. It is a hygiene factor in the service provider’s business to ensure safety, and therefore the provider must always be on top of the newest technologies and standards to provide safety. Cloud technology supports a variety of security settings, such as IP-limitations, encrypted connections, and modern authentication methods which prevent unauthenticated usage of the system. The service provider also ensures hardware functionality and database backups, making you carefree of the security and safety issues.
Software Development and Continuity Plan are heavy processes with an on-premise deployment model. Do you want new functionalities to keep up with new regulatory or client requirements? Of course, but it means once again long and costly projects. There is always extra time spent on trying to work with the different sets of hardware that every customer has. Instead, with cloud service, software development is continuously done by the software provider. You have the newest release of the software included in the monthly fee, ready to comply with the newest requirements in your market, and installed without disrupting your daily routines. In a cloud model the service provider takes care of the hardware, updates, and other technical stuff while you do your thing, successful wealth management. Both you and the software provider save time and money.
“The financial industry in general is going through major changes. Regulation is not going to come to its end. Therefore, software used in the industry needs to be agile to react and adapt into this continually changing environment. Considering this fact, the future of investment management is in the Software-as-a-Service technology. We are the trailblazer with this technology within the financial industry. We have already chosen the direction to eight years ago as we strongly believe that SaaS is the future, and since then we have focused on being the best in class”, stated Hannes Helenius, Partner and Chairman of the Board at FA Solutions in our Fund Management Breakfast seminar in October 2015.
Flexibility offered by cloud technologies is the key for future success. A cloud platform and its smart pricing model adapts to your functionality and usage needs. You don’t have to tie up money, personnel or care on hardware. Be smart and tie them on your core business instead.