Investment Management Firms Embrace New Technology in Bid for Efficiency & Regulatory Compliance
TSAM Conference -New York – Results of a new survey reveal that operational and technological change is high on the list of priorities for investment management firms. The report, which is being launched at the TSAM New York conference taking place tomorrow, reveals that over half (56%) of respondents expect their firm to replace at least part of their existing technology platform, while a quarter (27%) plan to outsource some areas of operation in the next 12 months in a bid to improve efficiency and focus on core operations.
Efficiency improvements were the most commonly cited reason for undertaking technology upgrades, identified by 88% of those firms looking to replace their technology. It was followed by greater agility (61%) and supporting business growth (56%). The biggest driver for organizational change is regulation (42%), ahead of client demands (14%), cost reduction (12%) and entry into new product areas (11%). The majority (56%) of respondents view technological disruption as an opportunity versus 22% that said it was a threat.
“The asset management industry is on the cusp of radical change as firms look to improve efficiency and adapt to the new competitive and regulatory environment,” said Jonathan Wiser, Director at Osney Media, which commissioned the study and organizes TSAM New York. “With so much focus and attention devoted to the influence technological disruption could have on the financial services industry, it’s interesting that regulation remains the number one reason for effecting organizational change.”
With so many legacy technology system replacements anticipated in the next 12 months it is unsurprising that the majority (57%) of respondents claim their expenditure on technology will increase. The study also reveals that, despite the focus on efficiency, fewer than half of firms (46%) have formal metrics in place to measure operational efficiency gains.
Bill Haynes, CEO and founder of BackBay Communications, the marketing and communications consultancy that conducted the research, said: “These transformational projects often require a massive commitment both financially and in terms of effort, taking multiple years to complete. Despite having very clear goals, any company looking to embark on such a project can’t expect to see results overnight. Communicating the goals, both with internal and external stakeholders, as well as setting and measuring its progress, is crucial to the success of any implementation.”
For more information on TSAM New York, including how to register to attend, please visit:http://www.tsam.net/newyork.
BackBay Communications and Osney Media conducted an online survey of senior decision-makers at investment management companies between 19th May and 3rd June 2016. The survey was completed by 140 respondents from across all areas of operations including client reporting, technology, marketing, investment, accounting and finance, performance measurement, risk management, senior management and product development. 11% of respondents worked at firms with less than $1bn assets under management (AUM), 41% have an AUM of between $1bn and $100bn, 32% have an AUM of between $100bn and $500bn and 16% have an AUM of over $500bn.
About BackBay Communications
BackBay Communications is an integrated branding, marketing, advertising and public relations firm focused on content-driven communications for the financial services sector including asset managers, investment advisors, private equity firms, financial technology companies and banks. BackBay takes a brand-centric approach to developing messaging and building integrated communications programs, featuring content marketing and digital delivery. BackBay offers a unique combination of content and creativity. BackBay’s services include public relations, branding, marketing plans and materials, videos, digital and print advertising, website development, and social media. BackBay is highly regarded for thought leadership initiatives and relationships with the major business media. For more information, please visit www.BackBayCommunications.com.
OsneyMedia’s products cater to investment management practitioners responsible for Technology, Operations, Data Management, Performance Measurement, Investment Risk, Client Reporting & Communications, Marketing and OTC Derivative Operations. Through a combination of live events, bespoke training courses and the membership-based Performance and Risk Association, our products reach hundreds of buy-side practitioners across the globe. Our dedication to providing this community with first-hand, business-critical information makes all of our products leading edge. For more information, please visit https://www.osneybuyside.com.
Most funds are managed cross-border using passporting rights.
Buy side's need for transparency sparks a renaissance in high touch.
Algos have evolved -- but what about the overall management of the client order?
Alliance with CG Blockchain aims to boost transparency and security of the OEMS.
There are multiple ways to make buy-side workflows more efficient.