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Alternative Market Briefing

Asset managers need to faster embrace advanced technology to be more profitable: Study

Thursday, September 19, 2019

Laxman Pai, Opalesque Asia:

Asset managers need to embrace new technologies, such as artificial intelligence (AI) distributed ledger technology (DLT) and robotic process automation (RPA), faster and more thoroughly to enable revenue growth, said the results of research from Accenture and the Investment Company Institute.

The study, which is based on a survey, reveals that although most asset managers (65%) have updated their cost models to be more profitable.

42 percent of respondents said their technology and operations infrastructure wasn't up to snuff in a way that would help their firms implement new growth strategies.

Respondents accept that disrupting these areas will require cooperation across the ecosystem- between asset managers, service providers, exchanges and more-together with a "capacity for innovation" in operations.

70% of money management executives said the next wave of innovation comes from AI. Other areas where technology can boost profitability for managers are within distribution and investment strategy innovation.

The study shows that 55% of asset management firms have a formal data management initiative in place to enhance data governance and quality, while 42% of survey respondents said they have a back- or middle-office system consolidation or conversion initiative underway.

Two-thirds of respondents (66%) said data management is the area of their businesses that most calls for total disruption.

This capacity must in......................

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