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Digitalization as the Main Trend of Asset Management

Digitalization has influenced the finance sector a lot over recent years. Leveraging digital technologies to do business is peculiar to this market because of its data-driven nature. And within finance, nearly the fastest development is seen in the digitalization of asset management, i.e. in the acquisition, management, and sale of assets in the most profit-making way possible. Why is that so? Let’s have a closer look at this latest trend.

The benefits of going digital are evident. They include faster and cheaper performance in the context of a growing amount of operations. Companies accelerate the attraction of new clients, which leads to higher revenues. Predictive analytics, in its turn, enables experts to make smarter decisions and avoid behavioral bias. Thus, they earn a greater profit on the assets under management. Clients and managers have real-time insights into the risks and revenues. Finally, companies can invest less in back-office operations, leverage cheaper locations, and outsource services.  

The main drivers for the digitalization of asset management are a vast amount of globally created data and technological innovations. 

The cheap storage of data enables anybody to work with it. At the same time, information overload creates a need for transparency throughout the whole asset lifecycle. The systems should be able to extract valuable data and communicate, view, and analyze it effectively.

Such disruptive technologies as Artificial Intelligence, the Internet of Things, the latest mobile solutions, blockchain, and cryptocurrencies inevitably shape the evolution of asset management. The tools for data creation and analysis, which weren’t in place a few years ago, are now available. Moreover, clients are changing. They become mobile-friendly, and social media is an integral part of their lives. Thus, they expect the modernization of the asset management industry as well.  

Among the useful tools that come along with digitalization are the automation of processes, the investment book of record technology, advanced data analytics techniques, etc. Natural Language Processing and Machine Learning enable systems to handle information faster. That helps companies comply with asset management standards, such as the ISO 55000 regulations. Additionally, these technologies allow managers to have a real-time overview of the market situation and determine positions faster.

 

What do companies do to achieve this digital transformation?

Firstly, they split up their budget between operations and development. And the firms use both to introduce client-driven strategies such as customer journeys. Secondly, they invest hard in technologies such as automation, Agile development, data lakes, etc. One of the essential components of such a transformation is asset management software. At the same time, companies are getting rid of inefficient legacy systems. Thirdly, they make technology the core pillar of their competitive strategy. Firms engage talented staff and emphasize the ability of digital solutions to produce value.  

To embrace new technologies, a company needs to develop a digital strategy and to choose the best IT solution for its business format. This involves support from its executives, as well as the establishment of cross-functional teams.

 

 

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Denis Ostapchenya

Denis Ostapchenya

Head of Financial Services

Andersen

Member since

30 Nov 2020

Location

Minsk

Blog posts

4

This post is from a series of posts in the group:

Banking Strategy, Digital and Transformation

Latest thinking in respect to Banking Strategy, Digital and Transformation. Harnessing our collective wisdom to make banking better. Ambrish Parmar


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