There are approximately 40 providers of portfolio management systems (PMS) in Switzerland. Currently, 650 asset managers (UVV) are FINMA-licensed, according to estimates, another 1,000 licenses are still with FINMA.
According to expert estimates, around 35% of these UVVs use a PMS solution. Thus, in the Swiss market with 500 to 600 potential customers, there are on average 12 to 15 customers per PMS provider.
As a result of the new regulation, numerous EIAs will disappear, which will increase the competition on PMS providers. We can imagine that isolated PMS providers will also withdraw from the Swiss market.
Inexpensive PMS solutions are available from as little as CHF 5,000 per year, while more expensive solutions are only available from CHF 60,000 per year. However, the upper limits are open. Most PMS providers range between CHF 10,000 and CHF 30,000 per year.
It is not uncommon for a UVV to be dissatisfied with its PMS provider because its needs are not covered by the tool. Often the fault lies in an insufficient evaluation. The UVV has not dealt with its needs sufficiently in advance.
A PMS evaluation checklist might include the following items:
| Functionality | Security | Cost-Benefit |
|---|---|---|
| Ease of use and accessibility | Data security and data protection | Cost-benefit analysis |
| Integratability with other systems | Compliance with legal requirements and industry standards | Long-term alignment with business goals |
| Customizability and scalability | References and experience from other UVV | Updates and maintenance of the system |
| Reporting and analysis capabilities | a test phase is possible | |
| Customer support and training |
A more detailed explanation of each of these points would have to follow at this point. But to summarize briefly; the UVV should have very clear ideas about what exactly he wants, otherwise he runs the risk of betting on the wrong horse.
The investment in a PMS tool over a ten-year period is usually between CHF 50,000 to CHF 600,000 and should be made very thoroughly for this reason alone. PMS contracts are usually for several years. A wrong decision can have existential consequences for the UVV. Simply listening to a recommendation from a good friend is dangerous.
IGUV offers its members support in PMS evaluation. Our specialist has been supporting banks and UVV for many years as an independent consultant. He knows the PMS providers on the market and can on the one hand save UVV considerable time during the evaluation, because he immediately recognizes which provider can be excluded. He can minimize the risk of a wrong decision because he asks the right questions and in the best case, he confirms your favorite and thus gives you additional security.
If you are currently evaluating or are not satisfied with your current PMS solution, we recommend that you talk to our PMS expert. Our expert will also be happy to support you in the evaluation of CRM, DMS and WMS solutions.