No matter how tech-savvy and automated a wealth management firm becomes, there’s always a degree of people and process. This work is required, oftentimes manual and routine, yet very technical and specialized in nature. And all of this is handled by the operations department.
A cost center
Historically, firms have viewed operations as just a requirement and not a source of differentiation or competitive advantage. They’re a cost center, not revenue driver. Depending on the size of the firm, operations is typically staffed by dozens or even hundreds of people who spend a lot of time engaged in repetitive tasks that, while required and very important, are not perceived to add value.
In addition to having to recruit, train, manage and compensate these employees, firms also struggle to maintain optimal staffing levels. The depth of expertise in the operations workforce has fallen over the years. Today, when someone leaves, it’s difficult to find a skilled replacement in a reasonable time span.
Imperfect solutions
For some brokers, especially those that desire to be self-clearing, these costs and staffing issues must be borne. Some smaller firms simply seek to avoid these challenges and opt to complete transactions by working with major clearing brokers. While this approach can help to alleviate staffing concerns, firms that go this route face high costs and lose control of their customer data. In addition, forgoing clearing and custody responsibilities also result in missing out on significant revenue opportunities.
A connected approach
BetaNXT has a mission to deliver a connected ecosystem that supports wealth management firms end to end, from the initial client onboarding through transaction settlement and ongoing servicing. As part of this approach, we’re delighted to unveil our new Operations-as-a-Service (OPaaS) offering. It’s been created not only to resolve operational challenges but also to introduce capabilities and capacity for firms to add value and grow their business.
- OPaaS means that you will never again suffer staffing-related challenges. We adapt to your lines of business and volume, with teams located across the U.S. for flexibility and redundancy.
- We promise easy access to senior expertise. As a dedicated operations business, OPaaS attracts talent by offering more interesting career journeys.
- OPaaS is part of the BetaNXT connected wealth strategy, which enables us to optimize outsourced operations with the technology and automation you already use.
When to opt for OPaaS
The way we see it, three scenarios exist where BetaNXT clients benefit from outsourcing their operations to OPaaS:
- Short-term: When you need additional operations staff for the short term. Training opportunities for your staff are also available to help maximize your team’s performance.
- Long-term: When you want to entirely outsource components of your operations for the long term.
- Comprehensive: When you don’t have an operations department and want to add one but don’t know where to get started.
What to expect
BetaNXT is focused on helping financial firms deliver the best experience possible to their clients. OPaaS is another offering that helps us achieve that objective. With OPaaS, wealth management firms benefit from:
- Flexible solutions. Simply put, in-house operations are inflexible. Not only is it expensive to run operations internally, it’s also difficult to maintain optimal staffing levels. OPaaS solves this with a collaborative and efficient operations outsourcing model that meets each firm’s unique needs and requirements. Our team works hand-in-hand with your team to deliver better operations results faster.
- Cost savings. For most firms, operations is a cost center. Our pledge is simple: we’ll handle operations for our clients for less than anyone else. Not only are our experts and specialists able to work productively from the start, you also get the benefit of eliminating the costs and time of recruiting, hiring and training operations staff.
- Talent. Rather than struggling to fulfill operations obligations, OPaaS delivers a talented team of seasoned professionals who can tackle all operations responsibilities while keeping organizations on the cutting edge of what’s possible.
- Revenue realization. To compete in today’s challenging environment, every dollar counts. Unfortunately, when firms are not self-clearing, they leave a great deal of money on the table as large clearing brokers maintain the books of record. OPaaS enables clients to unlock new revenue streams by bringing those books and records back inside each client’s own walls, ensuring all revenue stays in-house. At the same time, we can also help you bring new products to market. For example, let’s say your firm offers equities and mutual funds but wants to add options. We can handle the process and staffing needs on our end, enabling you to unlock new revenue streams without any heavy lifting.
- An improved risk posture. Without seasoned operations professionals, a greater risk of error exists, potentially resulting in increased financial, regulatory and/or client experience exposure. Through an expert operations teams, OPaaS helps you sharpen your operational risk posture.
- Continuous improvement for tech delivery. With so many competing priorities, it can be difficult for firms to stay on top of emerging technology trends. Our experts work in close collaboration with BetaNXT’s technology teams, ensuring you get the most out of your investments now and going forward into the future.
This blog post was based on a conversation with the BetaNXT OPaaS Team: Joe Colaizzo, Jason Keppy and James Torquato.
Talk to Joe
To learn more about how your firm can benefit from BetaNXT OPaaS, fill out the form to arrange a conversation with Joe Colaizzo, Head of Operations as a Service.
