How Private Banks Can Launch a Platform for Bankable Alternative Investments in Three Easy Steps

Building a Platform for Bankable Alternative Investments: Implementation Guide for Private Banks

Private banking institutions seeking to enhance their service offerings frequently explore platforms for bankable alternative investments. These platforms serve as powerful tools for portfolio diversification while providing sophisticated investment solutions to high-net-worth clients. This implementation guide examines the essential steps private banks must take to successfully launch such platforms.

 

Strategic Manager Selection and Product Architecture

The cornerstone of any successful alternative investment platform lies in its underlying investment offerings. Private banks must develop a robust framework for manager selection and product structuring that aligns with their institutional requirements and client demands.

Manager and Fund Selection Process

The foundation of a successful alternative investment platform rests on selecting appropriate managers and funds. Private banks must consider several key factors when building their investment offering:

Evaluating Investment Managers

Private banks should focus on identifying managers with proven capabilities and strong track records. Essential considerations include:

• Performance History: Examine the consistency and quality of returns over time
• Investment Strategy: Verify alignment with the bank’s investment philosophy
• Professional Background: Review the manager’s industry experience and reputation

Developing a Diverse Investment Menu

To create a comprehensive platform, private banks should incorporate various alternative investment strategies:

• Hedge Funds: Offering enhanced liquidity options
• Private Equity: Supporting long-term growth objectives
• Real Assets: Including real estate and commodity exposure
• Private Credit: Providing income generation alternatives

Client-Focused Approach

Understanding and meeting client needs remains paramount. Private banks should:

• Analyse their client base’s investment objectives
• Match fund selections to client risk tolerance levels
• Consider investment time horizons
• Gather ongoing client feedback to refine offerings

Success in launching a platform for bankable alternative investments depends on careful attention to these foundational elements. Through methodical implementation of these steps, private banks can develop robust platforms that serve their clients’ evolving investment needs while maintaining operational excellence.

 

Making Alternative Investments Bankable: The FundFront Process

The FundFront Advantage

After selecting managers and funds, private banks can partner with FundFront to transform these products into bankable assets. FundFront specialises in ensuring all products meet the regulatory and operational standards required for inclusion in private banking platforms.

Streamlined Implementation Process

FundFront works directly with selected managers to facilitate a seamless onboarding process:

Regulatory Compliance

• FundFront ensures all products comply with local and international regulatory requirements
• Implementation of necessary compliance frameworks
• Ongoing regulatory oversight

Operational Setup

• FundFront establishes the required operational infrastructure
• Development of supporting operational processes
• Integration with existing banking systems

Documentation and Due Diligence

• FundFront conducts thorough due diligence
• Compilation of all necessary documentation for bankable status
• Verification of compliance requirements

 

Technology Integration with HUBS

FundFront utilises sophisticated technology to integrate bankable products into their front-end platforms and databases, known as HUBS. This integration ensures:

Data Management

• Automated data feeds maintained by FundFront
• Real-time information updates
• Seamless integration with advisory systems

Performance Reporting

• Detailed performance metrics provided to advisors and clients
• Regular performance updates
• Comprehensive reporting capabilities

Documentation Management

• FundFront maintains all compliance records
• Regular documentation updates
• Systematic document organisation

Enhanced Transparency and Accessibility

Through FundFront’s process, all products receive:

• Comprehensive documentation
• Regular performance reports
• Clear fee structures
• Enhanced trust building with clients and advisors
• Simplified investment management processes

This comprehensive approach ensures products meet all requirements for successful integration into private banking platforms while maintaining high standards of transparency and accessibility.

 

White-Labeled Investment Platform Implementation

Platform Architecture Overview

The implementation process culminates with the deployment of FundFront’s white-labeled investment platform, customised for each private bank’s specific requirements. This technology solution enables direct access to alternative investment products for both advisors and clients.

Core Platform Features

FundFront’s platform delivers essential functionality through:

• Interface Design: An intuitive navigation system optimised for both advisor and client use
• Investment Information: Detailed product profiles incorporating performance metrics, risk analytics, and strategy overviews
• System Integration: Seamless connectivity with existing advisory infrastructure, enabling direct account access

Advisor Enablement

The platform enhances advisor capabilities through specialised tools:

Portfolio Management Tools

• Custom portfolio construction capabilities
• Client-specific investment recommendations
• Risk and allocation analytics

Performance Monitoring

• Real-time performance tracking
• Comprehensive reporting functions
• Client portfolio analytics

Knowledge Resources

• Educational materials for client engagement
• Investment research access
• Alternative investment insights

Client Experience Enhancement

The platform significantly elevates the client experience through:

Direct Investment Access

• Seamless access to alternative investments
• Integration with existing account structures
• Streamlined investment processes

Information Transparency

• Detailed product information
• Clear performance metrics
• Comprehensive risk analysis

Operational Efficiency

• Simplified subscription processes
• Streamlined investment management
• Reduced administrative requirements

This implementation creates a robust framework for delivering alternative investment solutions while maintaining high standards of accessibility and transparency.

 

Strategic Implementation of Alternative Investments

The integration of alternative investments into private banking platforms represents a significant opportunity for portfolio enhancement and client service advancement. Through a systematic approach encompassing manager selection, product transformation, and platform implementation, private banks can effectively expand their investment capabilities.

The three-step implementation process—careful selection of managers and funds, collaboration with FundFront for bankable product transformation, and deployment of white-labeled technology solutions—provides a framework for successful alternative investment integration. This methodology ensures regulatory compliance, operational efficiency, and client accessibility.

Private banks seeking to enhance their alternative investment capabilities can leverage FundFront’s expertise in creating comprehensive platforms for bankable alternative investments. For detailed implementation strategies and solutions, contact the FundFront team. Email us at hello@fundfront.com or fill in the form on our contact page here.