A company does not need vast capital investment to enter the wealth management space if it picks the right technology early on, Oakglen Wealth managing director Dominic Tayler has insisted.
Speaking to Money Marketing, he said: “Many assume that entering our industry requires vast capital investment, which was true until recent years.
“However, strategic early investment in the right technology and its effective implementation can drive efficiencies and significant cost savings – lowering barriers to entry while maintaining high standards.”
He suggested the claim that firms need over £100bn in assets under management to succeed “does not always hold true”.
In fact, he said, some businesses that have reached this size have found that scale can limit investment opportunities, leading to more average performance.
“We believe that being smaller and more nimble can provide certain advantages in delivering strong results,” he added.
“Not having legacy systems gives us a real advantage. Some firms still operate on outdated infrastructure, struggling with system transitions.
“We were able to implement a complete, off-the-shelf technology package, benefiting from expertise within our group.
“A key piece of advice we followed was to take the full system with minimal modifications – reducing risks that often come with customisation.”
Tayler said that, when the business had encountered integration challenges between Salesforce and SEI, software engineers from another business within the group, based in Atlanta, were temporarily assigned to resolve the issue.
“Within three weeks, APIs were built to link the two platforms. This is a great example of how we leverage technology effectively,” he added.
Another thing he believes can set a wealth management business apart is its ability to “identify opportunities where others are not looking”.
“Right now, many see drinks companies as poor investments, but valuations have reached a point where they appear relatively cheap,” he said.
“One stock we’re currently considering is CRH. If a ceasefire is reached and Ukraine begins rebuilding, there could be significant demand for cement.”
Tayler suggested that incorporating a thematic investment strategy allows the firm to identify the right stocks globally while “remaining flexible in its approach”.
“The key is to invest in the best companies in their field, rather than focus too much on what others are doing.
“Currency movements can sometimes work against you, but strong companies tend to balance this out in the long run.”
