The asset management industry faces a pivotal moment. As investor expectations evolve and competitive pressures rise, firms are being called to reimagine how they operate—not just incrementally, but fundamentally. Modernization isn’t just a matter of staying relevant—it is essential to improving operational efficiency, enhancing digital experiences and maintaining compliance.
However, traditional methods of transforming legacy systems often fall short. They can be costly, resource-intensive and disruptive. Enter tech-enabled lift-outs—an innovative strategy for modernizing operations, technology and processes with far less risk and greater upside.
Why Traditional Modernization Efforts Falter
Full-scale system replacements are far from straightforward. Legacy systems are deeply embedded in the fabric of many asset management firms, resulting in the following challenges when attempting to modernize:
- Siloed Technologies: Legacy systems often operate independently, leading to inefficiencies and data fragmentation.
- Resource Limitations: Internal teams are stretched thin and often lack the bandwidth for managing large-scale transitions.
- High Costs and Delays: Comprehensive transformations require significant investment and time, with no guarantee of success.
The cost of inaction, however, is even greater. Firms risk falling behind competitors due to inefficiencies, subpar digital experiences, and growing regulatory scrutiny on data transparency.
What Are Tech-Enabled Lift-Outs?
A tech-enabled lift-out is not your typical outsourcing engagement. Unlike traditional lift-outs—which may involve transferring people or processes with minimal infrastructure change—tech-enabled lift-outs integrate operations, talent and technology into a cohesive solution delivered by an experienced partner. Key characteristics of a tech-enabled lift-out include:
- Modernization Built-In: Streamlined processes, embedded automation and future-ready systems are integral to the approach.
- Seamless Continuity: Operations are transferred with minimal disruption, ensuring firms can maintain day-to-day functionality.
- Scalability: Integrated platforms and modular architecture position firms for growth and agility.
These lift-outs aren’t just about minimizing pain points—they’re a strategic lever for competitive advantage.
Real-World Use Cases for Asset Managers
At their core, tech-enabled lift-outs are touchpoints for comprehensive transformation with immediate and long-term benefits. Here’s how they bring value across various functions within asset management:
- From Manual NAV to Cloud-Based Automation
By replacing flawed, manual processes with automated, cloud-based workflows, firms can achieve faster, more accurate valuations while reducing human error.
- Integrated Investor Servicing
Fragmented systems that slow down onboarding and investor servicing can be replaced with a unified platform for seamless communication and support.
- Accelerating Fund Launches
Through pre-integrated templates and automated workflows, asset managers can speed up time-to-market, better capitalizing on emerging investment trends.
- Multi-Wrapper Fund Consolidation
Operations spanning mutual funds, ETFs and alternative investments are consolidated into one servicing ecosystem, eliminating redundancies and reducing costs.
- Regulatory Reporting Modernization
Automated compliance tools streamline filings like Form PF and N-PORT, complete with built-in validations and audit trails for greater accuracy.
- Upgraded Call Center and Investor Communication
Omnichannel communication tools, paired with workflow-driven operations, allow firms to elevate both investor satisfaction and operational efficiency.
- Data Unification for Improved Business Intelligence
Real-time dashboards integrate fund performance data across all departments, giving leaders actionable insights for decision-making.
The outcomes? Reduced operational costs, faster product rollouts, improved investor experiences and stronger compliance oversight.
The Role of Embedded Automation
Automation isn’t just a feature in tech-enabled lift-outs—it forms the backbone of their success. Some key automation capabilities include:
- Workflow Orchestration: By streamlining handoffs and approvals, teams spend less time on repetitive tasks.
- Robotic Process Automation (RPA): Automated bots perform high-volume, low-complexity tasks at scale.
- Integrated Data Layers: Unified reporting improves compliance and allows real-time operational visibility.
When automation is built into the core of fund operations, asset managers can achieve transformation without disruption—driving meaningful results while maintaining operational continuity.
Choosing the Right Partner for a Tech Lift-Out
Selecting the right partner is critical to the success of a tech-enabled lift-out. Firms should evaluate prospective collaborators based on the following criteria:
- Domain Expertise: Deep industry knowledge in fund operations and asset management is non-negotiable.
- Proven Success: Experience with complex lift-outs demonstrates a partner’s ability to manage unique challenges effectively.
- Proprietary Technology: Firms that own and innovate their platforms ensure consistent outcomes and reduce reliance on third-party solutions.
Why SS&C Is the Partner of Choice
- Vertical Integration: From fund accounting to investor communications, every aspect is seamlessly integrated.
- Focused Expertise: Decades of experience in asset management ensure tailored solutions.
- Scalable Platforms: Purpose-built infrastructure adds value at every stage of the fund life cycle.
Competitive Edge Through Tech Lift-Outs
Asset managers who modernize with tech-enabled lift-outs reap outsized rewards. According to McKinsey, firms that invest in robust digital transformation efforts can improve operational efficiency by up to 30% and reduce time-to-market for new products by as much as 80%.
The risks of waiting are steep. Staying stagnant isn’t neutral—it’s a tactical disadvantage. By integrating modern infrastructure through tech lift-outs, firms can scale operations, respond faster to market shifts and deliver superior experiences to both advisors and investors.
Unlock Agility and Innovation with Tech Lift-Outs
Tech-enabled lift-outs aren’t just operational fixes—they are strategic growth levers. By transferring operations to purpose-built platforms with embedded automation, asset managers can achieve:
- Enhanced agility and flexibility.
- Faster product innovation and introduction.
- Improved business performance and investor satisfaction.
Curious how tech lift-outs could transform your organization? Download our "Lift-Outs Success Checklist" today. Start paving your way to operational resilience and a competitive edge.
