The changing face of global asset management

by | Mar 16, 2021 | Blog, Cyber Security, Finance

Ignoring the wider changes in the asset management industry is much like a sailor ignoring the changing weather at sea.

If you don’t take heed of what’s going on around you, you could drift a long way from shore. Or, in this case, fail to achieve your wider business goals.

Perhaps unsurprisingly, technology is set to drive much of the upheaval in the asset management sector. Indeed, according to a recent survey, 40 percent of asset managers believe that technology is the future. Other trends, including a change in investment base, also demand attention.

With these facts in mind, we’re going to take a closer look at the changing face of global asset management.

What are the trends to look out for in asset management?

Yes, ‘technology disruption’ is perhaps at the top of the list when it comes to emerging changes in the asset management sector, but there are other trends to consider as well.

According to PWC, some of the most important ones include:

  • A shift in investor base. The growth of sovereign wealth funds and high-net-worth-individuals from emerging markets are just two examples of how the investor base is changing.
  • A new kind of manager. Economies of scale will push firms to become larger and span multiple countries – in turn, some ‘mega-managers’ will head up large teams of asset managers.
  • A regulator’s paradise. With real-time access to portfolios that are then cross-referenced with market data, regulators will be able to see everything asset managers are up to.

Naturally, every ambitious asset management firm should take these trends into account, as well as considering the seismic shift caused by new technologies.

How is technology affecting the future of asset management?

Asset management is looking increasingly different as modern technologies continue to roll-out across the sector.

Below is a list of some of the most important technologies to watch out for.

  • Cloud technology. With improved scalability, security, data back-up, and cost-effectiveness, there’re many benefits to choosing the cloud over on-prem solutions. Here’s our guide for financial firms looking to migrate.
  • Artificial Intelligence. In asset management, the AI market size is expected to grow by 37.1 percent annually. Crucially, it can add value to your business in many remarkable ways. For example, it can provide automated insight by assessing sentiment in earnings transcripts.
  • Data analytics. Get more value from your data with advanced data analytics. This can dramatically improve middle and back-office productivity and decision-making. For example, it can help remove bias when making investment decisions.

As you can see, technology has a huge impact on the asset management sector.

The question is: do you want to take the initiative or let other firms modernise their technology first?

Revamp your technology to keep up with the times

There’s no better time to look at ways to improve your tech stack.

After all, with technologies like advanced data analytics offering better investment decision making, and cloud technology offering various productivity tools, there’re plenty of impactful opportunities available to your asset management firm.

So, if you’d like a chat with one of our expert team to explore how an uplift in your IT could help your firm, please reach out today.

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