IT teething issues at Schroders Personal Wealth have been brushed aside by industry participants as par for the course when two businesses come together.
According to the Financial Times, the £13bn joint venture (JV) between Schroders and Lloyds Banking Group has faced widespread staff complaints over IT problems.
The FT reported the company’s head of human resources was forced to apologise to staff in an internal note after a survey highlighted concerns about Schroders’ Benchmark technology platform which underpins the JV.
The note said: “Many of you feel engaged and excited by our new company but hampered by technology and the impact that’s having on how you support your clients. We recognise the problems you’ve faced with the new systems, and are working hard behind the scenes to put in fixes as quickly as we can.”
A Schroders Personal Wealth spokesperson said: “Schroders Personal Wealth is making good progress and is on track for its full launch to the wider UK market later this year. It is working closely with its advisers as they transition to the new bespoke Benchmark platform.”
Schroders acquired Benchmark Capital in 2016 and it has previously been described as an integral part of the Lloyds JV that “should shake up the wealth manager market considerably”.
Schroders Personal Wealth, led by chief executive James Rainbow (pictured), launched to a certain number of existing Lloyds customers in June with 500 staff, and is expected to be rolled out to the wider market later this year.
Using staff as guinea pigs
Fundscape chief executive Bella Carridade-Ferreira said reports have been overblown.
“They’re doing the right thing and testing it with staff first before rolling it out to the broader market,” she said. “That allows them to test the system in a real-time, live environment and iron out any glitches before it goes live with customers.
“Essentially, the staff are their guinea pigs.”
Bump in the road or something more significant?
Altus Consulting director Simon Bussy said there will almost certainly be teething problems whenever a new technology solution is integrated into a business, particularly one with significant legacy IT systems.
“While obviously not desirable, particularly for advisers and other front-line team members, it’s certainly not unexpected,” he added.
Bussy said critical in determining whether this is a bump in the road or something more significant is the “time, focus and critical thinking” the team has given to the target operating model and technical architecture.
He said: “For any platform/re-platform project, get this right and these teething troubles will soon be forgotten; get it wrong and the challenge is much greater.”
CWC Research founder Clive Waller said: “Suffice it to say that when a small modern successful tech business meets an old, bureaucratic risk-averse bank, there will be tensions.”
