Vendor Software Selection

At Finarch, we have extensive experience implementing and support the leading investment management systems used by global insurance companies, asset managers, banks, and other investment managers.  Through this knowledge, we have built a comprehensive vendor software selection approach, where we will work with your organization to evaluate your Target Operating Model and which investment management systems would be best-fit for your organization.

On a typical engagement, the following high level milestones are part of the vendor selection process: 


  1. Define the specific needs and requirements of the company. This should include identifying which areas of the business the software will be used for, as well as any specific features or functionality that are required.  This should reference back to your organizations vision and target operating model (TOM)
  2. Define a clear evaluation criteria.  This should be quantifiable and transparent across all internal stakeholders and software vendors.
  3. Research and evaluate different software options. This can include reviewing vendor websites, attending demos or webinars, and talking to other companies that have implemented similar solutions. 
  4. Create a shortlist of potential software providers.  This is typically done through a RFP process and should be based on the company’s specific needs and requirements, as well as the vendor’s reputation, customer references, and overall fit with the company. 
  5. Conduct a thorough evaluation of the shortlisted options. This can include a detailed analysis of the software’s features and functionality, as well as any additional costs or services that may be required.  
  6. Make a final decision and implement the chosen software. This should include a detailed plan for how the software will be implemented, as well as any training or support that will be required. 
  7. Continuously monitor and evaluate.  Setup a framework to continously monitor the performance of the software and the vendor.  This is to ensure that the company’s needs are being met, and to identify any issues that may arise which have a clear escalation tree defined. 

 As part of Item 2 Above (Research and evaluate difference software vendors) – this input value has the most weight in the overall evaluation criteria.   We recommend to use a framework that looks at your organizations business and structure to evaluate the best fit solutions for your organization: 


  1. Portfolio management: The software should be able to handle the company’s portfolio management needs, including tracking investments, calculating returns, and generating reports. 
  2. Trading: Depending on the investment manager and business strategy, this could be as important or even more important than Portfolio management.  Speed and execution can be critical to some investment strategies and systems must be able to facilitate timely and accurate transactions.
  3. Risk management: The software should have the ability to assess and manage risk, including tools for stress testing and scenario analysis. 
  4. Compliance: The software should be able to ensure compliance with internal Compliance policy/limits, and relevant regulatory bodies such as the SEC or FINRA. 
  5. Data integration: The software should be able to integrate with existing systems and data sources, such as accounting, risk, performance, data warehouse or trading systems. 
  6. Reporting and analytics: The software should have robust reporting and analytics capabilities, including the ability to create custom reports and track key performance indicators. 
  7. User-friendly interface: The software should have an intuitive and user-friendly interface, with easy navigation and simple data input and retrieval. 
  8. Scalability: The software should be able to scale as the company’s needs grow, and support the company’s future goals. 
  9. Cost: The software should be cost-effective, with a reasonable price point that fits within the company’s budget. 
  10. Support and maintenance: The software should come with a clearly defined support structure and SLAs to ensure the vendor is reliable and responsive. 
  11. Implementation and Training: The software should be easy to implement, with minimal disruptions to business operations, and should also come with adequate training to ensure that employees can effectively use the software. 
  12. Expertise Availability: The software vendor should have a wide pool of experts available to provide skilled resources for implementation and ongoing support, at a reasonable cost. This will help keep the implementation within budget and ensure a good match between the required skills and the consultant’s expertise. 

At FINARCH, we have advised and implemented large digital transformation projects globally for our capital markets clients.  Our team has extensive experience working with the leading software vendors, and understanding their strengths, weaknesses and capabilities.  We take a holistic and vendor agnostic approach to helping our clients evaluate what software implementations are best fit for their organizations.  If your organization needs help defining its TOM and selecting which software vendor(s) are part of your digital transformation ambitions, reach out to us today for a consultation.

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