David Donovan examines the shift toward fact-based data models within the asset management industry as firms look to gain an edge on their competitors and respond to mounting margin pressure.
Asset managers are prioritizing the digitization of core services such as risk management and trading execution. However, additional transformation of customer engagement is lagging, especially in contrast to consumer brands.
Legacy systems can constrain an investment manager’s ability to provide a comprehensive and transparent view of the alpha process, hampering an effective response to mitigate alpha leaks. But as new technologies such as blockchain emerge, there is a significant opportunity for investment managers to refine their investment operations and enhance straight through processing (STP).
Recognizing that existing operational models cannot be sustained, organizations are exploring new ways to innovate, most notably through robotic process automation (RPA). But is RPA worth the hype? Is it the ultimate solution for enhancing control and reducing costs within operations? Or is it just another quick fix that won’t work over the long term?