Both investment managers and insurance portfolios have grown increasingly complex over the past few years.  M&A activity between the two has also accelerated, forcing the newly combined entities to figure out the best way to integrate disparate, overlapping and redundant systems as well as address redundant or overlapping operations and staff. Legacy technology and inefficient operating models can quickly erode any increase in revenue or margin garnered from such deals.

Trends like exponential growth, new entrants to the space and investor focus on low-cost products have led to an increased interest in front-to-back ETF servicing solutions. These trends are also prompting providers to take a more consultative approach, helping sponsors develop their own internal workflows. In fact, basket services and workflow fees are the most important processes in the ecosystem. However, it’s not a one-size-fits-all situation.