Tech Innovation Key for Buy Side

Technological innovation is one of four key trends that institutional asset managers will need to adapt to over the next decade, according to Standard Life Investments CEO Keith Skeoch.

In an opinion column published on Pensions & Investments, Skeoch cited democratization of financial risk; a low-growth, low-inflation, low-yield environment; a low level of trust in financial institutions; and technological innovation as major long-term trends.

Regarding the latter, Skeoch wrote: “Harnessing technology will enable asset managers to enhance client service by delivering customizable global services that meet institutional investors’ complex needs. It also means consumers can get access to their assets more quickly than before. In a world that is fragmenting, it is increasingly important to invest in building scalable, value-add platforms that offer outcome-oriented solutions to the growing pools of investible assets around the world. The demand for a seamless, integrated and tailored solution for investors will drive technology for asset managers.

The ability to invest is always very simple in asset management, which is no more than a combination of people and technology. The firms that will win out in the end are the ones that have the scale and ability to invest in people and technology in order to be global within an increasingly politically fragmented world.”

Related articles

  1. Direct indexing provides a platform to bring crypto assets into advisor workflows.

  2. Direct indexing is expected to grow from $350bn AUM in 2020 to $1.5 trillion by 2025.

  3. The US SEC has not approved spot bitcoin ETFs.

  4. Companies will need at least one director from an underrepresented ethnic minority group on their board.

  5. Net ESG flows in first nine months of 2021 surpassed full-year total for 2020.