[June 22, 2016] |
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Investment Management Firms Embrace New Technology in Bid for Efficiency & Regulatory Compliance
Results of a new survey reveal that operational and technological change
is high on the list of priorities for investment management firms. The
report, which is being launched at the TSAM New York conference taking
place tomorrow, reveals that over half (56%) of respondents expect their
firm to replace at least part of their existing technology platform,
while a quarter (27%) plan to outsource some areas of operation in the
next 12 months in a bid to improve efficiency and focus on core
operations.
Efficiency improvements were the most commonly cited reason for
undertaking technology upgrades, identified by 88% of those firms
looking to replace their technology. It was followed by greater agility
(61%) and supporting business growth (56%). The biggest driver for
organizational change is regulation (42%), ahead of client demands
(14%), cost reduction (12%) and entry into new product areas (11%). The
majority (56%) of respondents view technological disruption as an
opportunity versus 22% that said it was a threat.
"The asset management industry is on the cusp of radical change as firms
look to improve efficiency and adapt to the new competitive and
regulatory environment," said Jonathan Wiser, Director at Osney Media,
which commissioned the study and organizes TSAM New York. "With so much
focus and attention devoted to the influence technological disruption
could have on the financial services industry, it's interesting that
regulation remains the number one reason for effecting organizational
change."
With so many legacy technology system replacements anticipated in the
next 12 months it is unsurprising that the majority (57%) of respondents
claim their expenditure on technology will increase. The study also
reveals that, despite the focus on efficiency, fewer than half of firms
(46%) have formal metrics in place to measure operational efficiency
gains.
Bill Haynes, CEO and founder of BackBay Communications, the marketing
and communications consultancy that conducted the research, said: "These
transformational projects often require a massive commitment both
financially and in terms of effort, taking multiple years to complete.
Despite having very clear goals, any company looking to embark on such a
project can't expect to see results overnight. Communicating the goals,
both with internal and external stakeholders, as well as setting and
measuring its progress, is crucial to the success of any implementation."
For more information on TSAM New York, including how to register to
attend, please visit: http://www.tsam.net/newyork.
Survey Methodology
BackBay Communications and Osney Media conducted an online survey of
senior decision-makers at investment management companies between 19th
May and 3rd June 2016. The survey was completed by 140
respondents from across all areas of operations including client
reporting, technology, marketing, investment, accounting and finance,
performance measurement, risk management, senior management and product
development. 11% of respondents worked at firms with less than $1bn
assets under management (AUM), 41% have an AUM of between $1bn and
$100bn, 32% have an AUM of between $100bn and $500bn and 16% have an AUM
of over $500bn.
About BackBay Communications
BackBay Communications is an integrated branding, marketing, advertising
and public relations firm focused on content-driven communications for
the financial services sector including asset managers, investment
advisors, private equity firms, financial technology companies and
banks. BackBay takes a brand-centric approach to developing messaging
and building integrated communications programs, featuring content
marketing and digital delivery. BackBay offers a unique combination of
content and creativity. BackBay's services include public relations,
branding, marketing plans and materials, videos, digital and print
advertising, website development, and social media. BackBay is highly
regarded for thought leadership initiatives and relationships with the
major business media. For more information, please visit www.BackBayCommunications.com.
About OsneyMedia
OsneyMedia's products cater to investment management practitioners
responsible for Technology, Operations, Data Management, Performance
Measurement, Investment Risk, Client Reporting & Communications,
Marketing and OTC Derivative Operations. Through a combination of live
events, bespoke training courses and the membership-based Performance
and Risk Association, our products reach hundreds of buy-side
practitioners across the globe. Our dedication to providing this
community with first-hand, business-critical information makes all of
our products leading edge. For more information, please visit https://www.osneybuyside.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160622005610/en/
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