psKINETIC

Asset Management Series – Growing the Business in 2022 and Beyond

In 2022 global asset managers face significant challenges requiring the executive leadership teams to re-think their target operating models to achieve the strategic growth objectives of the business over the next 5-years. 

The critical areas of focus for all asset managers are well known and include integrating ESG criteria into the investment process and monitoring investor mandates to meet individual SRI aspirations. Differentiation is also desirable for an asset manager’s strategic growth roadmap. A recent survey found that “85% of asset managers believe that they must restructure and redefine investment operations to focus on competitive differentiators.” This can involve developing new products and access to other markets to exploit regional growth opportunities, for example, in China.  The increased appetite by investors for access to alternative investments or the real asset markets has seen significant inflows into Private Equity, Private Credit, Real-Estate, Infrastructure and Renewables. 

Digital transformation is a continued area of investment depending on where they see themselves on the digital maturity curve. As a starting point, asset managers require better data and insight for alpha generation to deliver better market intelligence for new product development. This can be challenging (especially in the illiquid markets) when managing multiple systems, data providers, legacy platforms and at times constrained by legal and contractual obligations. Data is also used to provide essential management information, monitoring and governance for compliance and risk. Client services teams need data to better understand client behaviour and associated trends to provide a more personalised service and an enhanced client experience. 

However, there are significant costs associated with scaling any business. To mitigate these costs, asset managers must be able to deliver operational efficiencies across their value chains which include the front, middle, and back-office. In real terms, the way to reduce the cost base is to identify inefficiencies in BAU, through business process improvement and by automating workflows. It is equally important to consider the important role played by innovation and emerging technologies such as blockchain and cognitive technologies that use ML and NLP. 

For further details contact

David Landi – Head of Asset Management 
E: David.landi@pskinetic.com
www.linkedin.com/in/david-landi/

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