TowerGroup Assesses Progress and Pitfalls on Road to Integrated Wealth Management Platform

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NEEDHAM, MA, March 11, 2004 � At the start of the decade, TowerGroup envisioned a wealth management platform that would make private banking for the affluent more efficient � allowing institutions to deliver �private banking lite� to emerging affluent investors with $250,000 to $1 million to invest. To date, financial institutions have made headway by spending aggressively on advice and financial planning tools to equip advisors to deliver wealth management. However, what has yet to happen is the full integration of back-office data to give advisors a holistic view of clients, and to give clients regular updates on their net worth.

The industry will see greater acceleration in the coming years in the wealth management arena, as financial institutions begin to tackle data integration efforts. TowerGroup expects spending on wealth management to grow at a compound annual growth rate (CAGR) of 5.1% from $2.3 billion in 2002, to $3.1 billion in 2008.

In TowerGroup�s new research titled, �The Apocalypse of the Four Models: A Wealth Management Platform Is Still a Vision, But It�s Not There�Yet!,� Matt Schott, a senior analyst in the Retail Brokerage & Investing practice at TowerGroup, discusses the key drivers spurring retail financial services institutions toward the concept of an integrated wealth management platform. He outlines TowerGroup�s wealth management architectural model and the challenges engendered in each of the four solution models identified in prior research relative to supporting technology. Additionally, he provides updates on seven wealth management technology providers with institutional case studies for several of them.

About TowerGroup: TowerGroup is the leading research and consulting firm focused on the global financial services industry. A respected source for trusted information and advice, TowerGroup brings many of the world�s largest financial services, technology and professional services firms a deeper understanding of the business and technology issues impacting their organizations. Headquartered near Boston in Needham, Massachusetts, and with offices in New York, London, and Kuala Lumpur, TowerGroup serves a global client base. Visit TowerGroup online at