Digital Transformation Consulting

A European banking group faced significant challenges in the competitive wealth and asset management sector, particularly in reducing its total cost of ownership while enhancing customer service and expanding market share. To address these issues, the bank sought to implement BlackRock’s Aladdin Enterprise, Aladdin Wealth, and eFront solutions. Recognizing the complexity of this transition, the bank engaged Accenture to assist in several key areas: defining a comprehensive risk model at the group level, improving portfolio management for relationship managers, providing automated portfolio rebalancing and investment recommendations through a Robo Advisor, streamlining wealth and asset management processes, and maximizing return on investment.

Accenture's approach involved a comprehensive transformation strategy that included central governance, risk management analysis, and system integration. The team conducted a feasibility study to assess governance IT estimates and developed a target operating model alongside a company-wide risk model. A significant aspect of the project was the creation of a Robo Advisor to automate advisory services, particularly aimed at reaching previously underserved customer segments. Additionally, Accenture supported the transition of assets from assets under administration (AUA) to assets under management (AUM) and provided ongoing project management throughout the initiative.

Although the project is still in the design phase, early results indicate a promising trajectory. The banking group has established a confirmed plan for rationalizing its wealth and asset management platforms, which includes a target architecture and simplified processes. This new scalable solution is projected to yield annual savings of approximately €2 million. Furthermore, the implementation of Robo Advisors is expected to significantly increase the bank's advisory proposals to 1.7 million within five years. Overall, the banking group anticipates not only a reduction in total ownership costs but also an increase in customer acquisition and profitability, alongside enhanced efficiency and customer experience.