NEW YORK–(BUSINESS WIRE)–Whereas 95% of asset managers in North America imagine that their know-how, information and digital capabilities will likely be aggressive differentiators by 2025, many stay within the early phases of adopting disruptive applied sciences, together with synthetic intelligence (AI) and cloud, in keeping with a brand new report from Accenture (NYSE: ACN).
The report — “Inventing the Future of Asset Management” — relies on a survey of 250 senior asset-management executives in North America and consists of respondents from 17 of the 25 largest asset managers globally. It notes that whereas cloud-native know-how might present asset managers with quite a few advantages — serving to them scale their companies quickly, decrease prices, enhance the client expertise and acquire higher entry to information — solely 8% of these surveyed have accomplished their cloud journeys.
Asset-management companies are additionally within the nascent phases of adopting AI – lower than one-third (28%) are experimenting with the know-how, 38% are deploying it throughout focused enterprise teams, and simply 17% are within the extra superior stage of scaling AI throughout their organizations. Correctly harnessing and making use of AI will likely be vital for product improvement, alpha era and delivering a differentiated buyer expertise, in keeping with the report.
The report notes that asset managers’ product methods are evolving sooner than their potential to operationally adapt, placing strain on companies to implement extra versatile and scalable operations and know-how. As an example, greater than 4 in 5 (85%) asset managers imagine they should radically restructure and redefine their funding operations to focus extra on aggressive differentiators, together with efficiency, shopper expertise, and breadth of choices.
“Whereas asset managers are assured about reaching their strategic visions by 2025, operationally there’s lots they should obtain earlier than that may occur,” mentioned Mike Kerrigan, who leads Accenture’s North America Asset Administration business group. “Asset managers have to reimagine their operations; embrace cloud, AI, and information analytics to cut back prices; and, extra importantly, create larger agility throughout their working mannequin and platform structure. Getting there received’t occur in a single day, so aligning capital funding, vendor partnerships and inside expertise will likely be vital.”
The report notes that as alpha turns into harder to realize, it’s changing into extra vital for asset managers to create personalised services and products that may assist enhance the client expertise. To fulfill this want for personalization, 4 in 5 (83%) asset managers want to increase into new funding merchandise and methods, whereas three in 4 (74%) are contemplating increasing their services and products exterior of funding merchandise, together with appearing in advisory or consultative roles for traders, advisors and distribution companions.
The report additionally means that bettering product distribution will likely be much more vital as asset managers more and more think about promoting on to customers. As an example, 9 in 10 respondents (91%) mentioned they intend to remodel their product distribution worth chain inside the subsequent 5 years. Though doing so would require new know-how capabilities, in keeping with the report, lower than one-third (28%) of respondents mentioned their companies have already carried out new know-how platforms.
“The trail ahead for asset managers is evident, however whether or not they may have the fitting know-how, information and operations capabilities in place by 2025 is the vital query,” mentioned Girard Healy, a managing director in Accenture’s Asset Administration business group. “Companies want to find out whether or not their core competencies are actually making a aggressive benefit in at the moment’s market. As product cabinets throughout the business get smaller, asset managers can’t assume that their model or legacy fame will carry sufficient weight within the battle for shelf area. The bar has been raised — companies have to double down on know-how and funding capabilities, and create a significant expertise to ship 360-degree worth for purchasers.”
The complete report might be accessed here.
Accenture performed discipline analysis throughout the US and Canada in late 2020 to raised perceive asset supervisor’s priorities for at the moment, tomorrow and into 2025. Accenture surveyed 250 senior executives at asset managers — together with institutional, retail, various and hedge funds — in North America. The survey featured 17 of the 25 largest asset managers globally. The executives have been evenly aligned to one among seven enterprise features: funding administration, operations, advertising and marketing & model, know-how, product, distribution, and technique.
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