The scene for this report is set within the first two sentences with PwC stating that, “with change in the asset and wealth management industry now accelerating at an exponential rate….asset and wealth managers must become business revolutionaries, even disruptors, if they’re to survive and prosper.” From here, the points come fast and flowing with focus on four key trends shaping the industry. They make it clear that it is a buyer’s market, that wealth and asset managers are technological laggards, that there is a continued need to fill niche financing gaps, and finally, that investors have more specific needs than ever before, and those that can satisfy those unique needs will be the winners of the future.
This report argues that tomorrow’s industry leaders will look quite different from today’s. To be among them, asset managers will need to sieze opportunities to act boldly and transform the very way they work, through innovation that fully embraces advanced technologies such as artificial intelligence, machine learning, big data, and analytics. Jam packed with data, this report follows a similar trajectory of the PwC report, noting that those that innovate will be able to consolidate their positions, while others will struggle with disruption and turbulence. Split into three main sections, the report deep dives into a thorough snapshot of the industry, then looks at the matrix makeover needed by investment management, and finally looks at the pros and cons of M&A.
Asset management is an industry under pressure due to margin squeeze. There is the ever-increasing regulatory burden, macro-economic and political change such as Brexit, and new and disruptive business models such as robo-advisors. The focus in this report is the client and the fact that their expectations in this environment change quickly, placing even greater pressure on the industry to respond to their evolving needs. Asset management firms, which have historically been order-takers and product salesmen, are having to transform to become client centric driven not just by their clients’ needs, but also by regulatory change such as MiFID II, margin pressure and new competition. For global firms, regional variations and inconsistencies provide additional challenge as firms seek to standardize the client experience. So if customer excellence is your strategy for 2018, then this is a must-read report.
Technology is already revealing itself to be a big game-changer in the financial services industry. We are seeing numerous examples of innovative activity, with clients throughout the world continuing to evolve in order to address changing regulatory environments, challenging market conditions, and increasing investor expectations. Digital disruption is bringing about innovative changes to distribution, sales enablement, and the customer experience. This paper looks at the changing nature of investment in light of the digital revolution, applications of technology for simplifying operations and improving client engagement.
In this paper, TABB Group estimates that more than 75% of asset managers in the United States expect to be impacted by MiFID II. The heightened scrutiny of regulators, along with intensifying business pressures, are compelling investment managers to reconsider their operating and technical strategies. Organizations that take a proactive, intelligent, enterprise-based approach to data management and consolidation will be better equipped to comply with their regulatory obligations today, to prepare for impending regulatory requirements in the future, and to support future business growth and innovation.
Based on a survey of 100 Heads of Investment Operations based in North America the research prioritized buy-side firms, including asset management firms and institutional investors. The resulting report explores the compression of the front, middle, and back office and how this is redefining data and investment management systems.
Jay Wolstenholme is back with another blockbuster report from Celent. Sadly it is gated content, but if you are lucky enough to get your hands on this report, then consider it an early Christmas present. The report sets out to answer the following questions: Why do asset managers need to fix their technology now? What is the current reality of asset management IT architectures? What are practical ways out?
Covering the Investment Book of Records (IBOR), reconciliation, robotic process automation, workflow monitoring, cloud and standardization (to name a few) this is an important document for asset managers trying to fix their technology landscape.