In a recent SS&C whitepaper, “Now is the Time to Invest in Technology that Enables Growth and Performance,” we provided guidance on how to prepare for growth and globalization, which are fundamental drivers of change that operations must accommodate. But beyond these most basic market shifts, there are two disruptive trends that asset managers must focus on to optimize operations.
First, the explosion of data and the digitalization of information are affecting how asset managers operate. In Ernst & Young’s most recent global survey on asset management investment operations, “Managing Complexity and Change in a New Landscape,” 75 percent of respondents cited the quality and accuracy of data as a critical priority for IT and operations teams. However, there is no industry best practice; in the same E&Y survey, half of the survey respondents adopted common standards across the firm, while 43 percent employed a hybrid model with enterprise-level and local standards. For most asset managers, the primary challenge is establishing consistent, enterprise-wide practices for managing and sharing data as a baseline for their operational model.
Second, as the regulatory environment becomes both harsher and more fluid, asset managers are struggling to provide visibility and transparency to their investment professionals, investors and regulators. This problem becomes more severe as firms are challenged with managing exponentially expanding data. In Ernst & Young’s aforementioned survey, they suggest that asset managers adopt a strategic approach to regulatory compliance. This recommendation goes well beyond establishing holistic compliance programs. They recommend that asset managers “incorporate changes to organizational structure, functional alignment, processes, systems and data” when optimizing operations. According to E&Y, “data management is particularly crucial. This includes all of the related aspects of data management such as quality, timely delivery, analytics and reporting.”
The explosion of data and the tightening regulatory environment makes reporting a critically important function for turning data into knowledge and communicating information accordingly. These trends in reporting and transparency are causing COOs and managers of leading organizations to reassess their operating models, particularly for firms operating on a global scale.
Utilizing a reliable and proven solutions provider such as SS&C allows asset managers to optimize operations and align their business to this rapidly changing playing field. SS&C provides asset managers with technology and services that can grow and adapt with their businesses, which is why firms ranging from small, domestic asset managers to the world’s largest financial institutions rely on SS&C to enhance their data management and reporting operations.
The views expressed herein are those of the author and do not necessarily reflect those of SS&C.