Asset Management Solutions: Technology as a Tool for Optimal Growth

The end of this decade presents both challenges and opportunities for providers of asset management solutions.

Globally, Assets under Management (AUM) are predicted to have a 6% compound annual growth rate towards 2020. A large percentage of AUMs will remain controlled by North America and Europe. However, other parts of the world such as South America, Asia, and Africa will see significant growth considering that these markets are only starting to mature.

Over the next five years, technology will play a very big role in ensuring the growth of maturing markets. Technology will serve to connect these markets to more matured regions. This will require operations and asset management teams to embrace big changes in the next few years. To catch up with the global trend, asset management companies will have to expand the scope of their technology platforms. They will need to be more adept at navigating multiple technology systems and linking with offshore firms that offer asset management services across different regions.

New and smaller niche players can take advantage of new technology systems compared to their more establishedcounterparts who rely on old and possiblyoutdated systems. Both types of asset management companies will need to adapt to more efficient technology platforms that will enable them to achieve maximum growth and better execution capabilities.

Efficient technology platforms and infrastructure will provide solutions to increasing regulatory demands that require consistent and accurate reporting, and strong environment control. Companies will have to hone their technological capabilities in a way that matches their growth strategies and profitability.

An asset management company seeking to maximize growth through better technology platforms will either hold on to old infrastructures and depend on system updates (thereby losing opportunities for optimal capabilities) or build new partnerships with asset management solutions providers. The latter will mean handing over control of most middle office and back office operations, which will allow them to focus on more strategicfunctions.

Companies who choose the outsourcing route to receive support for evolving financial instruments, complex reporting requirements, and connectivity across multiple geographic regions will have to invest in asset management services providers who are in it for the long haul. Outsourcing partnerships will have to be stronger, consistent, and long-term if optimal growth is to be achieved.

Conifer is a leading global asset management services firm, which boasts of industry knowledge, product expertise and innovative technology resources. Its technology and office solutions, and commitment to strong, long-term partnerships, allow asset management firms to focus on attracting clients, generating superior returns, and running a profitable business.