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The Deathof Legacy?

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Andrew Foster - Executive General Manager for Private Wealth

March 2017

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Account openingReporting

Brand & reputation

Digital

Accessto markets

Robo

Excel

SQL

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Where are your legacy issues?

50%

17%

30%

Legacy is not just back office

- it’s ‘all office’ (front, middle and back)…

Back office Middle office Front office

Compeer & IRESS research 2017 - The Death of Legacy?

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%of firms envisage growing assets

under management between

30% to 90% in the next 5 years

Source - Compeer Compliance report 2016

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Top challenges over the next three years?

2%

How are you going to achieve this

growth alongside other priority challenges?

Disruptive

innovators

35%

23%

33%

7%

Regulation NewTechnologies

Legacysystems

Other

Compeer & IRESS research 2017 - The Death of Legacy?

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Over halfof Wealth Management firms say their

senior management spend up to 40%

of their time on compliance

Source - Compeer Compliance report 2016

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Something has to changein order to achieve this growth

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• Changing demographics

• Digital expectation

• Trust and security

• Channel preferences

• Advice v. guidance

• Omni-channel experience

• Differentiation by segment

• Restoration of Trust

• Suitability

• Price / cost transparency

• Flexibility

• Ageing and complex

legacy systems

• Under investment

• Consolidation

• Info sec

• New models

• Insource v outsource

• Innovation

• Greater use of data

e.g. pension dashboard

/ banking APIs

• Entry of tech players

to market

• Increased intrusion

• MIFID II

• FAMR

• Common Reporting

Standards

• Senior Managers Regime

• Pensions Freedoms

• FATCA

• CRD IV

• RDR - fee transparency

and sunset clause

• Data protection regulation

Change in the UK Wealth Market

Client expectations Regulation change Technology driven

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Top three factors influencing IT system change

1 Lack of scalability

2 Increased efficiency

3 Decreasing business risk

Compeer & IRESS research 2017 - The Death of Legacy?

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Top three factors influencing IT system change

The big question is how?

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essentialsfor building a scalable technology platform

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Think strategically• It’s not about plugging gaps and

automating manual processes

• Don’t build your next legacy system

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Put client centricityat the heart ofeverything you do Make it feel bespoke but delivered

in a controlled and cost-effective manner

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Account for the opportunity costof not building a scalable model ‘Old and reliable’ but...

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Eliminateoperational andstrategic misalignment

Get real! - create a technology framework

that can support your strategy

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People vs and robots

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Thank you

@iressuk iress.com

#jointhemovement