US wealth management platform expands into UK

US wealth management platform expands into UK

US wealth management administration group Genpact has expanded into the UK market by acquiring Citibank’s OpenWealth platform.

Already operational in North America after Genpact acquired the US OpenWealth platform business from Citibank earlier this year, this move completes the transaction by adding a “centre of excellence” in Glasgow with approximately 140 wealth management professionals, serving key UK clients.

Business will be done on this side of the pond via wrap and direct to consumer administration, with the group arguing that appetite for such products is expected to continue growing at an even faster pace over the next 10 years, fueled by regulatory changes mandating transparency and alignment of interest between advisors and clients, as well as pension tax reforms driving retail assets from annuities to platforms.

The OpenWealth’s platform provides end-to-end technology and administration services, including proposals, account opening, transfers, portfolio construction and customisation, rebalancing and trading, tax optimization, performance, regulatory reporting and compliance management.

Based on a flexible and open architecture, the core technology features a “single chassis” for all asset types, the ability to administer a client-centric view for all accounts and tax wrappers, along with highly configurable support for multiple engagement types.

Mohit Thukral, senior vice president and business leader for banking, financial services and insurance at Genpact, said that they see major growth opportunities in wealth management administration.

“We can now provide end-to-end wealth management servicing operations to two of the largest geographic markets, combining domain expertise, scalable technology, advanced analytics, and global services delivery that will further drive innovation, efficiency, and controllership.”

Stuart Geard, managing director at Nucleus, commented that Citi’s decision to sell its OpenWealth operation - which provides Nucleus’ back office administration services - to Genpact is a positive development for our users and our clients.

“Genpact is a global leader in transformational business process outsourcing and brings considerable experience from some of the largest providers in the US and Australian platform and wealth management markets.

“We have worked closely with Genpact over the last few months to agree service levels that will represent material and tangible improvements for users and clients throughout the life of the arrangement and I can confirm we have agreed a long-term deal with the business.”

The wider group has more than 70,000 employees and annual revenues of $2.28bn (£1.45bn) as at the end of 2014. Bain Capital became Genpact’s largest shareholder in November 2012, with the strategic objective to grow the company further.