Asset managers can be successful if they reorient strategies around business processes and data taxonomy

Utilising digital to build strategies is a need of the hour for asset managers who are faced with increased competition and changing expectations. Experts suggest that the next five years would be crucial for the asset management industry as it navigates a post-pandemic world. At the Macquarie Asset Management Conclave, Sanjeev Prasad, EVP & Global Business Head, Cloud & APAC at Coforge and John Speight, Chief Delivery Officer, Coforge, elaborated on how technology enabled operations could help shape the world of asset management.

Moderated by Hai Nguyen from Macquarie Asset Management team, the panel discussion centered around the benefits of moving to cloud, for the asset management industry. Asset managers have to quickly come up with new solutions to provide personalized and intuitive experience to their clients. Both Sanjeev and John shared how this could be achieved using Intelligent Automation, Data and Cloud to determine the right business processes and data taxonomy.

“Without AI and the algorithms, you struggle to get the insights you are looking for,” said Speight as he stressed the importance of digital transformation in the industry. Technology along with data transformation could help firms drive better efficiency and business outcomes for common business processes like Corporate Actions, Reconciliation and Data Management.

Moreover, Agility, Scalability and Elasticity are all very critical for an asset management firm. As it accumulates massive amounts of data, the need for fast computing increases which can be addressed only through cloud- based solutions. Speaking about scalability from his own experience, Prasad explained, “Agility and Scalability are the biggest reasons for moving to Cloud. Elasticity is very critical. If you wish to do any data analysis, you need to do it fast.”

Asset managers need a data-centric architecture to scale a multi-cloud, SAAS and custom application ecosystem. Discussions also revolved around the importance of a data savvy culture in Asset Management Operations. Middle and back-office operations have always been an expensive proposition for asset managers. They are under constant pressure to provide value for money to investors by minimizing operational costs. This can be done by making improvements to manufacturing efficiency. Effective implementation of data architecture and data taxonomy become important factors in achieving this efficiency.

As the frenzy to go digital escalates, firms must put greater emphasis on technology that powers these solutions. Asset management firms need a proper tech stack, or what can be called a cloud-based all-in-one set-up. They need to adopt a more effective cloud-based technology like a data warehouse, portfolio accounting system, trade order management system,etc. Technology can also be used to improve internal workflows and collaboration.

To sum up, any digital transformation journey requires good data management and collaboration with reliable partners apart from a sound technology stack. The asset management industry is gradually evolving to embrace this journey.