PCR Reiterates Strong Asset Growth Expectation

Tom Burroughes

21 May 2018

Private Client Resources, the US-headquartered service provider to the wealth management sector, has reiterated its prediction that is likely to cover around $500 billion in aggregated assets by early next year, up from $250 billion, pointing to trends in private banking and UHNW client behavior as forces at work.

The firm and its partners have, since launch, signed and collaborated with 28 end‐client engagements. AltaReturn, Dynamo, HWA International, Risclarity, Ledgex, Empire Software, and InvestCloud are some of the investment management technology companies working with PCR. It said in a statement that 13 technology providers have signed up with PCR in the past six months – another nine partnerships are due to be “announced shortly”.

“Our business growth is driven primarily by institutional wealth managers and adoption of our aggregation-as-a-service by a wide range of technology and application providers,” the firm told this publication recently when asked for more details. PCR was founded in 2000.

“Private banks have returned to held away aggregation as a strategy to elevate their advisory status with over 60 per cent of new business in this category. The institutionalization of multi-family-offices are driving decisions that focus on sustainable infrastructures with data management at its core,” it said. “The traditional RIA space and the custodians that support them are trying to figure out ultra-high net worth clients and serve next generation clients and reduce the cost of providing advice.”

and then books it all in a single ledger.)

Asked where the industry faces challenges, PCR said privacy, globalization and enterprise integration are areas where the wealth industry needs to improve. There is a need for technologies to ensure anonymization , irrefutable consent for how an individual’s data is used, information telemetry technology to make sure the enterprise can satisfy privacy regulation and data sharing, such as the European Union’s GDPR data protection regime, it said.

“The rest of the aggregation space needs to get serious about global privacy regulation, they cannot reply solely upon loosely defined agreements, promises to implement best practices or large cyber insurance policies,” the firm said.

PCR said its new partners collectively represent $512 billion in potential serviceable assets under management, spanning a collection of over 300 new clients. The PCR partner program will expand the footprint of PCR TotalWealthStream, and promulgate “PCR Inside” model to more enterprises around the world.