My ERP Musings

ERP, ERP, some CRM and more ERP

Investment in Wealth Management CRM Predicted to Rise

According to research conducted by the Aite Group (find it here), investment in CRM software in the wealth management industry is due to rise 8% over the next five years in the US alone, with a rise of $160 dollars between 2010 ($460m) and 2014 ($620m). The 2011 study surveyed 380 financial advisors, with varying positions to CRM in their sector.

Whilst almost a quarter of those surveyed either didn’t have a wealth management CRM solution or find one integral or necessary for their business, one third of those without a CRM solution stated that they would invest in a CRM solution if they had the budget for it.

45% of those advisers that did employ a CRM solution said they were keen to invest more in improving their solutions, and although the amounts they stated they would invest vary a great deal, we can take from that figure that investment in CRM will continue to rise, not only for new investors in CRM solutions, but for pre-existing CRM customers.

Aite Group puts this down to the fact that developers have learnt from the mistakes and bugs of past releases, stating in their report that:

 ‘Solutions today are easier to use, and include sales and service best-practice functionality that end users (or administrators) can more easily configure on their own to fit the firm’s or internal groups’, unique practices. In addition to greater ease of use and end-user functionality, solutions today include workflow tools that allow advisors to gain greater control of their processes.’

They also cite the fall in cost of cloud based and SaaS CRM solutions as a possible reason for the up shift in interest.

As CRM developers use lessons from the past to build improved solutions, improve functionality and streamline important business processes, CRM solutions will only continue to attract more attention and in turn, investment. With implementation costs falling and the ‘software as a service’ (SaaS) business model beginning to pick up steam, we predict that it won’t just be the wealth management industry that sees a rise in investment in the coming years.

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