Let’s assume to gather business intelligence in the UK wealth management market by conducing face to face interviews with a variety of firms and combining the results with a separate questionnaire sent online to a further group of interviewees.
Let’s assume now to ask one simple question like the following:
What are your IT and operation costs as percentage of revenue?
IT Costs are a mystery for many
We guess you would expect rather heterogenous figures, with a degree of certainty from almost everyone. The actual results are surprising, indeed:
43 percent of firms don’t know.
The remaining 57 percent only fares marginally better than that. Half of them can say costs are less than ten percent of revenue; the other half simply stated that IT and Operations costs are likely to increase in the future, due to heavy investments in technology.
This suggests that profitability and cost-to-income ratios aren’t part of performance measurements and targets for the majority of firms interviewed, because of the lack of awareness of the current ratios.
This is for real
All of that is not fiction, but one of the many surprises to be found in the 2018 Objectway-Compeer report about the state of UK wealth management market.
We suggest to have a look at it. After all, it’s freely downloadable from our website.
Do you know how much you spend in IT and Operations as a percentage of revenue?