The transformative impact of artificial intelligence has been touted by asset management industry experts for several years now, and use-cases are starting to roll in. While not a sudden revolution, AI is being applied successfully across a variety of functions, with the front office being the most deeply embedded in asset management. While starting with customer-facing functions is a natural choice when implementing AI, middle and back-office are starting to catch up.
One of the reasons that asset managers are recognizing the potential of using AI to improve the efficiency of operational activities is largely because of the cost and margin pressure in the industry. As a result of fee compression and the rising costs of compliance in response to increasing regulation, asset managers are re-evaluating their operating models. Many are choosing to eliminate legacy products, products and technologies, consolidate vendors, outsource with third-party service providers, and move lower-value activities to offshore locations.
In the context of those changes, rules-based automation and machine learning algorithms can be applied to repetitive processes, increasing accuracy and operational efficiency, while also reducing errors. When combined with the benefits of implementing AI in the front office, the service enhancements increase customer retention and boost sales. Asset managers can also use AI to identify whether a customer is ready to buy or at risk of defecting, enabling them to act pre-emptively to recommend products and services that will retain the customer’s business.
SS&C has invested heavily in AI and RPA to bolster our core outsourcing and fund services for fund managers, with products like Vidado, a document digitization solution, and RPA specialist Blue Prism. In addition to full outsourcing services, fund administration, transfer agency and digital investor solutions, we also offer machine learning, intelligent process automation, predictive analytics and natural language processing.
To learn more about the opportunities of AI in asset management, download our "AI & RPA in Fund Servicing: The Application of Artificial Intelligence (AI) to Fund Operations" whitepaper.
Alternative Investments, Asset Management, EMEA