In a recent Waters Technology article, the SS&C Singularity team weighed in on the importance for asset managers to focus on new, advanced technologies to deliver top-line growth.
Today’s razor-thin margin environment requires investment management firms to optimize their middle and back-office operations to be as efficient as possible. One important key in achieving this goal is the use of Artificial Intelligence (AI) technologies.
New products in the middle and back-office investment space use innovative AI to achieve levels of efficiency in investment accounting and operations that cannot be attained by traditional technologies. Some of the best examples are machine learning, natural language processing (NLP) and robotic process automation. The advantages of these “smart” tools tilt the scale strongly in favor of asset management firms that can sustain continuous investment in the technology and expertise to leverage them effectively.
Asset managers that cannot—or choose not to—invest in innovative solutions will need to leverage a hosted solution or platform service model from a vendor that is heavily invested in this space. Firms that transition their investment accounting and operations to a hosted solution or a platform service model can achieve more than cost savings. If the service/solution provider is utilizing the latest technologies, the added efficiency and accuracy delivered by these solutions will allow asset managers to deliver faster, more comprehensive services to clients. This enables the middle and back-office functions to be leveraged as a strategic growth initiative rather than simply as a cost center. Asset managers that embrace advanced technologies can step out of the race to the bottom where competition is driven by reduced fee structures, and instead, focus on driving top-line growth by competing on their ability to create innovative investment strategies and customer experiences.