Unlocking Growth series - the investor perspective

Navigating Technology Investment for Trust and Corporate Services Businesses: Insights from Industry Experts.

In the evolving world of trust and corporate services, growing value in your business means embracing cutting-edge technology. Whether you're considering an initial investment or looking to accelerate your current tech strategy, understanding what you need to demonstrate to investors or your internal stakeholders is paramount. Through our Unlocking Growth webinar we gained insights from investors Jacob Van der Wiel and Jos Gritter, shedding light on what they look for and offering valuable advice for businesses looking to access investment for technology transformation.

1. Assessing Technology Investment

Jacob Van der Wiel, a private equity investor, emphasises the importance of technology investment as a key factor in evaluating businesses. For potential investors like Jacob, the level of technology investment indicates the business's forward-thinking approach and operational efficiency. Ideally, businesses should allocate around 6 to 8% of their revenue to technology, striking a balance between innovation and financial prudence.

2. Efficiency and Scalability

Jos Gritter underscores the importance of efficiency and scalability in technology investments. Investors seek businesses with streamlined, scalable technology solutions that support organic growth and potential mergers and acquisitions. Cloud-based solutions are particularly favourable, offering flexibility, scalability, and security— crucial in today's global landscape.

3. Timing and Strategy

Both experts agree that the question of when to invest in technology isn't as critical as ensuring it gets done. With the industry experiencing ongoing consolidation, businesses must position themselves as attractive investment targets. Investing in industry-standard systems not only enhances operational efficiency but also makes businesses more seamless to integrate into larger platforms—an essential consideration for future mergers or acquisitions.

4. Metrics for Success

When it comes to tracking the impact of technology investment, key performance indicators (KPIs) play a crucial role. From the initial assessment of IT spend to measuring operational efficiencies post-implementation, KPIs provide tangible insights into the value derived from technology investments. Metrics like entities administered per team member, AUM per employee, and increased processing capacity post-implementation showcase the tangible benefits of technology investment.

5. Building the Business Case

Armed with these insights, businesses can start building a compelling case for technology investment. By aligning with industry benchmarks, focusing on efficiency and scalability, and emphasising the potential for operational improvement and future integration, businesses can present a strong argument for why technology investment is not just desirable but imperative for long-term success and competitiveness.

The path to successful technology investment in trust and corporate services businesses involves strategic allocation, a focus on efficiency and scalability, and a keen eye on industry trends. By understanding what investors or internal decision makers seek and leveraging technology as a driver of growth and operational excellence, businesses can position themselves for success in an ever-evolving landscape.


Need support?

If you're looking to build a business case for investment why not book an introductory call with one of the team. They'll be more than happy to offer some advice and support you through the process.