COVID-19 has been an awakening. Most asset managers had convinced themselves they had time to catch up on the digitization agenda. Now, many know they must expedite their timelines. What would have been implemented by 2030 we believe will now need to be achieved by 2025.
- Increasing numbers of fund managers will work with the bigger technology providers and the large industry platform providers who offer scalable processes and tools to the industry
- Internal capabilities will be rapidly built out – Cloud enabled digital capabilities will be accelerated
- Automation and artificial intelligence will proliferate, as fund managers look for tools and technologies to enhance digital channels and improve the investor experience – such as collaboration tools to better connect employees to clients, each other and the enterprise
- Mid-office and back-office processes – regulatory, trading execution, treasury, finance, risk and compliance, for example – will be reimagined and redesigned in order to enable the future business and operating models
- However, at the same time, we expect the big tech players and asset management platform providers to begin delivering many of these processes as a service, allowing most fund managers to refocus on their core differentiators.
- The most aggressive and innovative fund managers are likely to see this as an opportunity to fundamentally reinvent the alpha generation process. They will be looking at innovations in AI, IoT, 5G technologies – as well as emerging technologies such as edge computing and quantum computing – to uncover new ways to gain trading advantages over their peers and competitors
- End to end platforms are likely to evolve to service the entire investment value chain from front to back. There will be an evolution of the App market place where market data providers, risk analytics providers, ETPS & other point solutions will integrate with the platform - asset managers can utilize this platform to monetize their tech / data assets