SEI Launches Advanced Multi-Custody Capability for U.S. Wealth Management Clients

Rhea-AI Summary

SEI announces enhanced technology for wealth managers to view and manage assets custodied with third parties, providing greater transparency and tailored advice based on a complete financial picture.

Financial Analyst

The integration of SEI's advanced aggregation service into the SEI Wealth Platform signifies a strategic enhancement in the wealth management sector. This advancement offers wealth managers a comprehensive view of their clients' assets, including those held away from SEI's custody. From a financial perspective, the ability to manage a full spectrum of assets through a singular system could streamline operations, potentially reducing overhead costs associated with data management and reconciliation.

The service's impact on SEI's revenue growth could be substantial, given the enhanced value proposition for existing and prospective clients. This is particularly relevant as the industry trends towards a demand for holistic financial management solutions. Furthermore, the mention of over $50 billion in assets being managed through this system indicates a significant scale of operations that could be leveraged for future growth.

However, the adoption rate among wealth managers and the seamless integration with third-party custodians will be key factors in determining the long-term success of this initiative. As more clients utilize this platform, SEI could see an increase in its market share within the wealth management technology space.

Market Research Analyst

SEI's announcement reflects a broader industry trend towards integrated financial technology solutions. By offering a multi-custody capability, SEI is positioning itself as a leader in a market where consolidation and comprehensive data aggregation are increasingly important. The ability to provide real-time transaction creation, tax lot maintenance and accurate gain/loss reporting is a competitive differentiator that could attract wealth management firms seeking to enhance their service offerings.

Moreover, the potential for centralized governance of acquired books of business without the need for custody migration presents a strategic advantage. It simplifies the process for wealth managers who acquire new clients, as it eliminates the barrier of asset transfer complexities. This could lead to an increase in client retention rates and acquisition of new clients looking for a more streamlined wealth management experience.

It is also worth noting the potential for this technology to drive industry standards. As SEI advances its platform capabilities, it may prompt competitors to enhance their own offerings, which could lead to an overall improvement in technology solutions available to wealth managers.

Technology Analyst

The technological implications of SEI's enhanced aggregation service are significant. By integrating high-fidelity data with custodian information, SEI is addressing a common pain point in the wealth management industry: data inconsistency. This integration is likely to improve operational efficiency and accuracy, which are critical components in financial reporting and compliance.

The mention of 'advanced integration' suggests that SEI is employing sophisticated technology to ensure the seamless flow and reconciliation of data. This could involve the use of machine learning algorithms or advanced data analytics to enhance the accuracy of performance reporting and portfolio analysis. Such technological advancements could set a new precedent for data management within the wealth management industry.

As organizations increasingly rely on technology for a competitive edge, SEI's initiative could encourage further technological innovation in the sector. The long-term implications for the industry could include a shift towards more tech-driven solutions, with a focus on data integrity and operational efficiency.

Advanced Aggregation Service Provides Greater Transparency into Customers' Complete Financial Pictures

OAKS, Pa., March 21, 2024 /PRNewswire/ -- SEI^® (NASDAQ:SEIC) today announced that U.S. wealth managers utilizing the SEI Wealth Platform^SM (SWP) can view and manage assets custodied with third parties through an advanced integration with SWP's proprietary core accounting engine. SEI's enhanced technology combined with the strength of its operational processing and reconciliation services enables the enhanced aggregation of high-fidelity data.

By maintaining robust, accurate data at the core accounting level, SEI's transformational multi-custody capability enables a seamless experience across internal and third-party custody accounts and helps ensure data consistency across any front- and middle-office solution integrated into SWP. Benefits include:

• Greater transparency of a customer's total assets, regardless of where they're custodied
• Tailored advice based on a complete financial picture
• Ability to manage both custodied and held-away assets through a single process and experience
• Centralized governance of acquired books of business without a custody migration

Sanjay Sharma, Global Head of SEI's Private Banking and Wealth Management business, said:

"As wealth management organizations continue to wrestle with inconsistent data provided by point solutions that don't run across the entire customer lifecycle, SEI's multi-custody capability is a game-changer for the industry. We don't just aggregate the data—we go above and beyond by caring for it. By ensuring the data is flowing properly, then enriching and reconciling it, we can provide enhanced data accuracy for wealth managers across applications, no matter where the assets are held.

"Investing in and advancing our data and platform capabilities globally is an important component to helping drive growth—for our clients and our business. Our solutions allow them to better serve their customers more holistically with a complete view of their businesses' and customers' data."

By synching high-fidelity data with the custodian, organizations can operate within a unified infrastructure for front-, middle-, and back-office applications and services. Our advanced aggregation service enables an internal custody experience for external custodied assets within SWP, including capabilities such as:

• Real-time transaction creation
• Tax lot creation, maintenance and reconciliation
• Accurate gain/loss reporting
• More robust performance reporting and portfolio analysis

Rob Wrzesniewski, Head of Global Solutions for SEI's Private Banking and Wealth Management business, said:

"Providing leading-edge solutions that meet the market's needs for an end-to-end, frictionless wealth management experience is imperative to helping our clients grow their businesses for the future. The SEI Wealth Platform's multi-custody capability not only empowers our clients to better serve their customers, but it can also create opportunities for them to gain new customers without requiring them to migrate custody of their assets. We're excited to help our clients continue to transform their organizations and power the future of wealth."

Six U.S. wealth management clients are utilizing this capability through SWP, with more than a dozen preparing for future deployment. Currently, more than 230 third-party custodians feed data into SWP, representing more than $50 billion in assets.  

About the SEI Wealth Platform^SM

The SEI Wealth Platform (the Platform) is an outsourcing solution for wealth managers encompassing wealth processing services and wealth management programs, combined with business process expertise. With the Platform, SEI provides wealth management organizations with the infrastructure, operations, and administrative support necessary to capitalize on their strategic objectives in a constantly shifting market. The Platform supports trading and transactions on 156 stock exchanges in 58 countries and 51 currencies, through the use of straight-through processing and a single operating infrastructure environment. For more information, visit: seic.com/wealthplatform.

About SEI^®

SEI (NASDAQ:SEIC) delivers technology and investment solutions that connect the financial services industry. With capabilities across investment processing, operations, and asset management, SEI works with corporations, financial institutions and professionals, and ultra-high-net-worth families to help drive growth, make confident decisions, and protect futures. As of Dec. 31, 2023, SEI manages, advises, or administers approximately $1.4 trillion in assets. For more information, visit seic.com.

Company Contact:	Media Contact:
Emily Baldwin	Kerry Mullen
SEI	Vested
+1 610-676-3262	+1 917-765-8720
ebaldwin@seic.com	kerry@fullyvested.com

 

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SOURCE SEI Investments Company

What did SEI announce regarding U.S. wealth managers?

SEI announced that U.S. wealth managers utilizing the SEI Wealth PlatformSM (SWP) can view and manage assets custodied with third parties through an advanced integration with SWP's proprietary core accounting engine.

What are the benefits of SEI's enhanced technology for wealth managers?

The benefits include greater transparency of a customer's total assets, tailored advice based on a complete financial picture, ability to manage both custodied and held-away assets through a single process, centralized governance of acquired books of business without a custody migration.

Who is the Global Head of SEI's Private Banking and Wealth Management business?

Sanjay Sharma is the Global Head of SEI's Private Banking and Wealth Management business.

What capabilities does SEI's advanced aggregation service provide?

SEI's advanced aggregation service enables an internal custody experience for external custodied assets within SWP, including real-time transaction creation, tax lot creation, maintenance and reconciliation, accurate gain/loss reporting, more robust performance reporting and portfolio analysis.

How many U.S. wealth management clients are currently utilizing this capability through SWP?

Six U.S. wealth management clients are currently utilizing this capability through SWP.