FIS - Wealth and Asset Management BPS
Who Is This Vendor Assessment For?
NelsonHall’s Wealth and Asset Management BPS Vendor Assessment for FIS is a comprehensive assessment of FIS’ wealth and asset management BPS offerings and capabilities designed for:
Sourcing managers monitoring the capabilities of existing suppliers of capital market process outsourcing and identifying vendor suitability for wealth and asset management BPS RFPs
Vendor marketing, sales and business managers looking to benchmark themselves against their peers
Financial analysts and investors specializing in the support services sector.
Key Findings & Highlights
This NelsonHall assessment analyzes FIS’ offerings and capabilities in wealth and asset management services. FIS is one of a number of wealth and asset management services companies analyzed in NelsonHall’s comprehensive industry analysis programs.
Twenty years ago, FIS (Metavante) partnered with Marshall & Illsley (the parent company of Metavante at that time) to provide operations support to W&A managers (Metavante provided W&A technology and Marshall & Illsley provided custodial and operational services in a tri-party arrangement with W&A firms). In 2009, FIS acquired Metavante.
In 2013, FIS established Platform Securities, a provider of outsourced clearing and settlement services in the U.K.
In May 2014, FIS acquired Reliance Trust Company of Atlanta, Georgia. The combination now allowed FIS to provide technology, custodial, and operational services under one provider. At the time of acquisition, Reliance had $138bn in assets under management and administration ($155bn in January 2016). Reliance serviced ~5% of all 401-K retirement accounts in the U.S. It brought capabilities including:
Full fund administration operations outsourcing
Retirement trust and fiduciary services.
In 2015, FIS made its largest acquisition to date: SunGard for $9.1bn. SunGard was acquired for its capital markets presence; it had offerings in:
Risk and compliance
Securities finance and processing.
FIS delivers services from six delivery centers, to support its clients in the U.S. and U.K.:
Atlanta, GA: primary center in the U.S.
Birmingham: primary center in the U.K.
In addition, FIS has software and ITS engineers which support technology for W&A BPS based in:
FIS’ primary targets for W&A BPS are wealth and asset managers based in the U.S. and U.K. It is considering entry into the Southeast Asian marketplace in the future (>24 months). FIS segments its target clients into the following size categories:
Less than $1bn AUM: comprehensive servicing of operation needs
$1bn - $10bn AUM: client business model dependent sets of services
$10bn - $100bn AUM: client business model dependent sets of services
More than $100bn AUM: service for selective lines of business and/or processes.
FIS’ client types include:
Trust-centric wealth managers (both bank affiliated and independent): primary client base
Registered investment advisors
Within W&A BPS, FIS has focused on:
Geographies: U.S. and U.K.
Client types are trust-centric wealth managers:
Bank affiliated, primarily regional and community bank
Independent, primarily medium and small size wealth managers.
FIS pursues clients with a platform based set of BPS services, supported by industry standard solutions and services from alliance partners. It delivers a standardized set of services for clients which do not want to invest heavily in operations development and running.
FIS’ key differentiators are:
Proprietary platform, and the ability to maintain and adapt the platform
Resources to adapt to changing regulations
Ability to deliver trust services in the U.S.
FIS will continue to pursue its technology clients, which are three times as numerous as its existing W&A BPS client base, for up-sell opportunities. In addition, it will enhance its capabilities in processes where it has less developed functionality, such as client management for W&A.
Scope of the Report
The report provides a comprehensive and objective analysis of FIS’ wealth and asset management BPS offerings, capabilities, and market and financial strength, including:
Identification of the company’s strategy, emphases and new developments
Analysis of the company’s strengths, weaknesses and outlook
Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts
Analysis of the company’s offerings and key service components
Analysis of the company’s delivery organization including the location of delivery locations.
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