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SEI Investments (SEIC) Enhances Key Technology Offerings

SEI Investments (SEIC) launches Digital Account Open and Digital Model Management, two key technology enhancements that it will make available to advisors through its SEI Wealth Platform.

This story originally appeared on Zacks

SEI Investments Company SEIC announces enhancements to its technology platform. The company has launched Digital Account Open and Digital Model Management, the key enhancements that SEIC will make available to independent advisors through its SEI Wealth Platform (“SWP”).

Notably, it is through the SWP that SEI Investments’ primary business platform — Investment Processing — delivers its outsourced software and processing services. Revenues generated by it are recognized under information processing and software servicing fees, which have been witnessing a rise since the past few years (except in 2020 and 2019).

Erich Holland, the executive managing director of client engagement for SEI Investments’ advisor business, stated, “We are excited to continue our cloud transformation and enhance our technology platform with two cutting-edge tools that streamline how independent advisors deliver wealth management advice to their clients. These fully-digital, integrated solutions simplify and expedite the account open process and power customized portfolio implementation. With them, advisors will be better positioned to differentiate their practices through a personalized, goals-driven wealth management approach that works to build brave futures for the individuals and families they serve.”

Notably, the Digital Account Open technology will eliminate the traditional paper-based process, allowing advisors to open client accounts entirely digitally. The new technology will include an intuitive, step-by-step workflow to guide the input process. Its features include adaptable onboarding (from the launch to collecting an eSignature), and the ability to pause and save progress or assign responsibility to other authorized team members. Also, it will include an integrated process to catch input mistakes.

The Digital Account Open thereby simplifies the process of opening a new client account, and helps in expanding SEI Investments’ current electronic onboarding and eSignature processes.

On the other hand, with the Digital Model Management technology, advisors will get a fully-digital way to deploy and interact with client portfolios, all in a unified managed account framework. This cloud-native application will enable advisors to personalize client portfolios in accordance with their financial goals, risk tolerance, and tax and fee preferences.

Included within the Digital Model Management technology are features like an easy-to-navigate dashboard for creating and adjusting investment models across all types of investment strategies, including mutual funds, exchange traded funds (ETFs), and separately managed accounts (SMAs). The technology also includes smart workflows that will provide an intuitive setup, which follows the relevant steps for each investment change.

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Our Take

Technology is the backbone of SEI Investments’ businesses. Constant innovations in software are expected to help the company win clients, thus, aiding top-line growth. Moreover, rising demand for the SWP across several financial institutions is likely to augment profits.

Notably, in March 2021, SEIC acquired Oranj’s cloud-native technology platform, which is expected to support the SWP platform. Also, in October 2021, the company announced the buyout of Finomial, a firm offering cloud-native financial technology. In November, in an effort to broaden its capabilities for institutional investors and investment management clients, SEIC acquired Novus Partners, a global portfolio intelligence platform company.

Over the past year, shares of SEI Investments have rallied 2.4% compared with 8.9% growth recorded by the industry.


Zacks Investment ResearchImage Source: Zacks Investment Research

Currently, SEI Investments carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Competitive Landscape

Speaking about software enhancements by investment management companies, in April 2021, Invesco IVZ entered an agreement with State Street Corporation STT to adopt State Street Alpha, the first front-to-back asset servicing platform from a single provider for institutional and wealth management firms.

The migration to Alpha was intended to simplify Invesco’s investment infrastructure in order to improve scale, reduce risk and improve operating efficiency.

Notably, with built-in flexibility and scalability, SST's State Street Alpha allows clients to manage all public assets across global markets and streamline their day-to-day processes — helping to facilitate innovation, better inform investment decisions, optimize returns and streamline business operations. State Street Alpha is a fully integrated front-to-back platform that combines proven industry-leading components, and a comprehensive set of data and back-office services.

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