Many independent asset managers are looking to next year's budget process with trepidation. Newly required Finma licenses will lead to higher expenses, Patrick Schellenberg of Zurich-based startup Numas tells finews.com.
Last year, Lucerne-based Allocare Group acquired Zurich startup Numas, a company supporting clients, particularly family offices and asset managers, with data management, reporting, and software-as-a-service (SaaS) solutions. With a Finma operating license for independent asset managers becoming mandatory next near, Numas is at an important crossroads.
«Independent asset managers are currently under pressure,» says Patrick Schellenberg (pictured below), founder and CEO of Numas, in an interview with finews.com. «There is enormous uncertainty among their clients, and falling stock prices and rising inflation do not paint a rosy picture for the near future.»
Significant Added Costs
The budget process for 2023 is viewed by many asset managers with mixed feelings in light of these changes, as they set their course. «Revenue growth is only factored into optimistic scenarios,» says Schellenberg. Obtaining the new Finma license will entail one-time additional costs, with further costs in compliance, risk management, and business processes expected to be substantial the CEO continues.
Numas, under the umbrella of the Allocare Group founded in 2001 in the canton of Luzern, positions itself as an outsourcing partner in data management with an added wrinkle. «All employees and the entire IT infrastructure and processed data are located exclusively in Switzerland,» according to Schellenberg.
In addition to interfaces with over 50 custodian banks in Switzerland and abroad and various market data providers, Numas supports its clientele with manual transaction entry and back- and middle-office operations. «Exactly the right amount of resources the respective asset manager needs are made available so they can substantially reduce costs,» says Schellenberg.
Outside Relief
Numas' services are designed to take over administrative tasks of independent asset managers and family offices so they can focus on serving their clients and generating income. The outsourcing of processes not directly related to revenue generation is a trend that will dominate business development in the industry during the coming year.
With security risks in IT generally growing and uncertainties in business dealings with foreign countries, services from Switzerland and a Swiss-based infrastructure will become key success factors.
