How tech can improve efficiency in your asset management firm

by | Apr 8, 2021 | Blog, Digital Technology, Finance

Imagine how your business would fair if it didn’t keep up with the times and adopt new technology.

‘Not well’ is probably an understatement.

Indeed, according to Stephen Crocombe, CFA, Head of Client Portfolio Solutions in EMEA at Blackrock, when it comes to the asset management sector, ‘no one can afford to stand still’.

To uncover what tech can do for your asset management firm, let’s unpack three important technologies and how they can boost your efficiency.

Harness the power of data analytics

With advanced technologies that find and aggregate hard-to-reach data, asset management firms now have more data than ever at their fingertips.

By using Microsoft’s Azure Stream Analytics, for instance, you can make the most of real-time analytics, all while leaning on the scalability and affordability of the cloud. As a product, it also enjoys enterprise-grade reliability and an end-to-end analytics pipeline that’s production-ready in minutes.

Finding alpha-generation opportunities with this data is a clear opportunity for asset managers. Naturally, with more data, you can make better investment recommendations and portfolio decisions, ensuring your firm is more efficient and successful.

Embrace applications in the cloud

In 2020, Microsoft added an impressive 95 million users to Microsoft Teams. Driven by the pandemic, businesses everywhere adopted cloud-based application suites like Microsoft 365 to remain operational.

Here’s a closer look at what asset management firms stand to gain by embracing Microsoft 365:

  • Real-time collaboration. Share mailboxes, calendars, and collaborate on financial documents together in industry-standard tools, such as Microsoft Word, PowerPoint and Excel.
  • Secure remote working. With threat protection tools, such as Microsoft Defender ATP, you’ll get complete endpoint protection from cyber-attacks and data breaches.
  • Business continuity. Your sensitive client and financial files are now regularly backed-up in the cloud. So, if anything happens to any device, your business will continue without a hitch.
  • Process automation. Using tools like Power Automate, it’s easy for staff to turn every day, repeatable processes into low-code automated tasks.

As well as productivity tools from companies like Microsoft, it’s also worth looking at AI-based applications more specific to the asset management sector.

Take advantage of robo-advisors

The total amount of client assets managed by robo-advisors is projected to reach an eye-watering £5 trillion pounds by 2025.

Figures like this demonstrate the boost in efficiency asset managers enjoy with robo-advisors. Indeed, the reduction in human labor costs means that robo-advisors can charge an annual flat fee of only 0.25 to 0.5 percent of a total client’s total balance. By comparison, human financial planners typically charge one percent.

In addition, the efficiency of robo-advisors means clients can enjoy a smoother, faster customer experience when executing a trade. Rather than meeting with a human financial advisor or making a phone call, customers can now complete the trade online.

Evolve your technology to evolve your firm

As you’re no doubt aware, technologies like data analytics, cloud-based applications, and robo-advisors continue to evolve all the time.

And, as they do, they bring more value to those who make use of them.

So, why not get on board now before your competitors get a head start?

If you’d like to learn more about how technology can boost your asset management firm, download our complete guide below.

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