Thursday, 5 March 2015

Tomorrow’s Technology Needs for Asset Management

Data management is, and will continue to be, the life blood of a successful asset management business.  The business case for adequate investment in data management will be more apparent as asset managers will be challenged to produce accurate client, regulatory, and operations control reports. Having a robust data management environment (clean data, good governance, controls, clear data dictionary and traceability, etc.) will be the foundation for more ambitious initiatives around Big Data and Digital Intelligence.  

We anticipate innovative technology offerings that bridge the gap between product manufacturing (“asset management”) and consumption (“distribution,” “client interaction”), whether it is about mining data from social media, CRM systems, and distribution network; or partnership between technology firms and financial services players to monetize available data. 

By 2020, technology will have become mission-critical to drive everything from customer engagement, to data mining for information on clients and potential clients, to operational efficiency, and of course regulatory and tax reporting. In addition, the demand for a seamless, integrated and tailored solution for each customer will drive technology for asset managers in the future.


At the TSAM conference,  the participants shared perspective on how effectively they have managed to sift through large volumes of data to come up with models that help the dual goals of making better trading decisions and managing operational risk.  Some of these initiatives took more than 10 years in the making, but the investments have started to pay off.  Some participants averred that despite using the best of the technologies, they often can’t harness the full potential that the systems offer due to lack of training, skill set, or incentives. It seemed as if technology concepts and topics were not made easily accessible to employees who would rather spend their free time on non-value add activities. 

Cybersecurity is the new hot topic and it has touched a nerve at the C-suite level given its relevance and impact. These are the reasons why Softmint thinks technology will be a key gamechanger for the successful asset management firms of tomorrow. Simply put, the firms that can successfully deploy and use technology will have an operational edge over those that cannot. Of course, preparing to engage in all of those activities and adapt your technology in these ways is no small task. That’s surely an understatement.



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