Asset managers failing to adapt to digital world

Asset managers failing to adapt to digital world

Less than half of global asset managers and asset owners think that they are adapting technology quickly enough to support their business growth needs, according to a survey from State Street.

The poll of 507 industry players shows that digitisation remains a priority order to address growth concerns, with the understanding that it has the potential to streamline operations, create efficiencies, and optimise performance and risk management.

However, in an industry known as a sluggish adopter of new technology, firms are struggling to keep pace as the rate of change accelerates, with only 43% stating they are adapting tech quickly enough to support business growth needs.

The findings chime with a recent survey commissioned by Dassault Systèmes, which found that just 27% of wealth managers offer robo-advisers, and only 31% use big data, while the adoption of revolutionary platforms like distributed ledgers is viewed as a distant dream.

Another recent report from Ernst & Young found that many wealth and asset management practitioners are "not very familiar with how blockchain actually works or what the benefits might be".

State Street urges asset managers to "align technology with ambition" by acquiring to onboard innovation, integrating systems and expanding their distribution through mobile and robo.

Jeff Conway, chief executive officer, Emea, State Street, says: "We believe the financial industry is at of the beginning of a new, digital era. In a world where data is the new currency, assets backed by intelligence will change how institutions will deliver on their investment objectives and risk management needs."

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