Asset management firms are reassessing their operating models to increase profitability while finding new avenues for growth. Many firms will need to explore new paths, including the application of new technologies to investment research, product development and the customer experience. Forging ahead; however, will be difficult without a core technology infrastructure that can keep up—a challenge many firms are already grappling with.
Next week, I’ll share some key steps asset management firms can take when designing a modern IT ecosystem, but first, let’s look at some of its benefits.
Supporting growth with the back office
Accenture has identified six major benefits that asset management firms can derive from establishing a modern, integrated back office function:
- Agility – Firms can scale up rapidly to exploit product launches and respond to changing regulatory requirements with minimal disruption.
- Differentiation – Deliver differentiated products with the kind of support and personalization that customers now expect.
- Insight – The technology platform can support advanced analytics, providing better support for decisions on everything from risk management to product pricing.
- Efficiency – Identify and implement measures that lower costs while improving customer satisfaction.
- Transparency – Modern, integrated systems can provide informational transparency with less difficulty and at a lower cost.
- Customer reporting and analytics – Provide information and insights to customers at the time and place of their choosing.
It’s hard to argue against the case for a modern back office function, yet many asset management firms are moving forward—albeit slowly—with ill-equipped legacy systems. This reality isn’t because of a lack of awareness or an unwillingness to transform. Rather, many firms are still searching for the right infrastructure and right package of solutions to support their strategic objectives.
Join me next week when I look at how an ecosystem concept can help asset management firms start the transformation process.
To learn more, download: Designing a Modern IT Ecosystem for Asset Management Firms (PDF; opens in a new window).