It’s been nine months since I first shared with you why digital transformation is one of asset managers’ biggest challenges, and how they can begin the transformation. So, asset managers: where are you along the journey? If you’ve started the process, you know it’s not an overnight transformation. Successful digital transformation is about taking the right action, rather than just taking any action—this is important to remember. That’s why today and next week, I’m going to take a deeper dive into how asset managers can integrate digital technology across the investment management lifecycle. Let’s start by exploring the first two stages.

Giving investors what products they really really want

Imagine being able to offer investors a product they really want and need. Indeed, that’s what most asset management firms strive to do when launching a product, but without listening—and I mean really listening—to their investors, firms may be going at it blindly. Now imagine if you could tap into social media to support the development of new products that actually reflect changing investor demands.

Big data can help with that. Analytics helps pinpoint changing demographics and demands with specific population segments and can be used to test investment ideas with different audiences.

Supporting and educating clients

As the cycle moves into the phases related to generating demand, the use of digital technology will depend upon the firm’s chosen strategy. For example, a model based on self-service and low-cost options emphasizes the need for mobility, interactive solutions and analytics.

A model based on distributing products through financial advisors can employ analytics to review financial advisor production, providing wholesalers insights into opportunities advisors can bring to their own clients. These insights can be tailored to the advisors’ clients using digital technology.

Digital technologies are also changing the role of the wholesaler, from someone focused exclusively on pushing products to a combination of coach and advisor. Customer relationship management (CRM) tools that are integrated with analytics can help wholesalers cross sell and improve advisor experiences with asset management firms.

Read the report.
Read the report.

Analytics can also provide insights on how to best manage costs and wholesaler spend in areas such as financial advisor entertainment as a means to develop relationships and increase sales. The best way to develop relationships is to be an effective coach and support the advisor in meeting and anticipating the needs of their existing clients and growing their pipeline of prospects.

Integrating digital technology across the investment management lifecycle will allow asset managers to quickly address challenges as they arise and adapt to change more rapidly. While the investment management lifecycle starts with product development and generating demand, there are opportunities to take advantage of the digital transformation across all phases.. Next week, I’ll conclude this two-part series by exploring the other two areas in the investment management lifecycle where digital technology can have the most impact.

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