Wealth managers and banks face big challenges in today’s fast-changing and technology-driven world. Growing client expectations and increasingly strict regulations lead to more and more complexity. Therefore, financial institutions must be equipped with state-of-the-art banking software from back to front. It is especially critical to maintain a high level of service quality.
This competitive environment brings new challenges to banking software vendors: Their platforms must be able to deal with exploding complexity especially with regard to compliance. Clients expect a seamless digital customer journey and service quality must be 100% for 24/7. Additionally, FinTech companies offer now sleek and agile solutions that enable banks to provide easy-to-use client tools on top of their existing IT infrastructure and pose a threat to integrated software vendors. All this forces vendors to re-think their business and digital strategy and to consider huge investments to ensure long-term growth.
Yesterday, banking software vendor Avaloq announced Warburg Pincus as a new partner with about 35% shareholding in Avaloq. Warburg Pincus is an international private equity firm with headquarters in New York and strong expertise in the banking and financial services sector, amongst others. Warburg Pincus hold more than $10 billion of investments in more than 90 companies of these sectors around the world.
This global presence combined with their focus on growth investing makes them a good choice for Avaloq who aim at accelerating growth. Avaloq responds to the dynamics fueling continuous digitalization and growing competition in the financial sector, laying the foundation for defending and strengthening their role as one of the biggest players in the field. Thanks to the new partnership and Avaloq’s well-known aspire to innovate, it will be well worth keeping a close eye on them in the next years.