The evolution of outsourcing for wealth managers: Micro BPO services


This new approach helps overcome the standard limitations in BPO* delivery services for the wealth management segment.

From full outsourcing to a platform of services: leveraging technology, the new approach to assisting Wealth Managers has to be based on a Business Process As A Service (BPAAS) approach that envisages offering specific and consistent support services (automated and human tasks) for specific microprocesses within the wealth management process chain: microBPO. Following the BPAAS methods, Adepa specifically developed a range of services (each to be considered as a “microBPO” service) able to cover specific needs in a very efficient way incorporating human intervention and application functions. This means having a platform ready to cover all the processes for supporting wealth management services with independent modules (microBPOs) that can be activated following the Client’s needs.

The underlying technology (infrastructure based on a cloud service, application/web API) makes it possible to work in open architecture in which the wealth managers/private banks and all the other potential providers can work together in a safe environment and with comprehensive governance of data and task monitoring. This approach helps remove any limitations in terms of volumes and synergy leveraging the technology to use the appropriate level of efficiency and effectiveness, even on relatively low levels of transaction volumes. The historical limitation for wealth managers (too few transactions to achieve the minimum level of efficiency) is at last no longer valid.

BPAAS primarily allows wealth managers to tailor the service model to their own model, “switching on” only the required microBPOs and implementing the integration needed with other external service providers.

Italian Private banks: Fitting the new model

The Adepa experience on how this approach can drive excellent performance in a very efficient way is related to Private Banking institutions in Italy: these financial institutions are generally half way between asset managers and banks. Private banks do core banking functions (cash account, cheques, pledges, etc.) but with low volumes, high average tickets and a need to customise the relationship.

Furthermore, they manage customised investment services (segregated accounts, managed accounts, financial advisory, art advisory, etc.) to their high net worth individual clients. Up until now, these clients faced a difficult decision whether to outsource their operations to traditional banking providers (core banking services, high volumes, standardised services, huge costs) or classical asset management providers (focused on products such as mutual funds, ETFs, specialised only for some investment services segments, etc.). In addition, some new players have joined the wealth management arena, increasing the complexity of service: the so-called “Digital Private Banks” started to work within a full digital process in terms of both the relationship with their clients and investment services offering robo-advisory and AI-based investment strategies.

The approach based on BPAAS, as deployed by Adepa, makes it possible to overcome the limitations of a standard outsourcer in the banking and financial sector, defining a new outsourcer model. The microBPO approach followed by Adepa with its BPAAS Platform allows Private and Digital Private Banks to switch on the services selecting the providers (Adepa itself or another leading company) that precisely matches their requirements, leaving Adepa to orchestrate and integrate the task. In this case, Adepa ensures the right governance of this environment through the use of technology and specifically-selected partnerships. The image below shows how the Adepa model works to support a Private Bank/Wealth Manager with regard to performing their administrative task orchestrated with Adepa’s BPAAS Platform involving partners.

Any task is independent and enables each sub-process to be followed in an end-to-end manner. Data are of course shared by all interested microBPOs in order to avoid duplication and maintain full consistency with external partners that can be responsible for specific services/microBPOs not provided by Adepa such as:

Coordinating for success

Each microBPO is a combination of application functions and human tasks, and we can provide one or more microBPOs together with a coordination layer (“Orchestrator”) able to call on each service or to invoke external services in an integrated manner with suitable governance. Each service has been configured to be provided independently, and the platform is natively engineered to allow the optimal level of integration with other platforms/services.

The Adepa approach aims to support Private Banks and Digital Private Banks that are committed to increasing their level of service to end investors and focused on better intercepting clients’ needs and opportunities in accordance with the offering side (new products, new markets, etc.)

To overcome the traditional monolithic approach to outsourcing that can be an obstacle to Wealth Managers/Private Banks using external service providers to obtain not only efficiency but also a high quality of service and focus on customisation – a critical factor of success for this business –,
the current approach based on “Business Process as a Service” is the best way to converge technology, administrative skills and a propensity for high net worth clients.

* BPO: Business Process Outsourcing

Danilo A. Pogliaghi
Head of Services -  Adepa Global Services

Danilo began his career at IBM Italy as Banking analyst and in 1994 participated in the launch of the first European company focused on outsourcing (ISSC – IBM Group). At ISSC he followed the banking service line of business. After an experience as operation manager at Europlus Asset Management (now part of Pioneer- Amundi), Danilo launched a startup active in operation consultancy services for asset management.  In 2017, he joined Adepa Global Services with all the team coming from the entrepreneur initiative.