Note from the Publisher: Remember, TECHNOLOGY for asset managers = (one type of) FINTECH. A new survey conducted by Osney Media and Backbay Communications has reavealed that, because of regulatory imperatives coming down the pike, over half of asset managers plan to replace technology assets in the next year. Now interestingly, the results of the survey were released late last week before the Thanksgiving holiday, BUT the survey was conducted from September 19th to October 21st. Note the dates, because that is PRE-election, when there was a presumption of a Clinton presidential win. Since that did not occur, and Trump has signaled that existing and pending new financial regulation may be called into question, the survey results might be very different if they were conducted post-election. Still, if you’re in the business of selling technology to asset managers, these survey results should signal a very good year for you in 2017.
“Results of a new survey reveal that technological and operational projects are high on the list of priorities for asset managers over the next 12 months as they respond to the changing regulatory landscape and to meet the evolving needs of their clients. The report, which is being launched at the TSAM Boston conference taking place tomorrow, reveals that over half (52%) of asset management companies surveyed are planning to replace out-dated or legacy technologies in the next 12 months.
One in three companies (32%) are also planning to introduce an online client reporting portal for the first time and 14% are looking to launch a mobile app as they look to improve the quality, timeliness and transparency of communications with their clients. Meeting changing client demands was identified as one of the key drivers of change in the asset management industry over the next five years by a quarter (27%) of the poll respondents. Data governance initiatives (31%) and outsourcing of technology operations (29%) are also both high on the list of priorities for asset managers over the next 12 months.
The survey, by Osney Media and BackBay Communications, highlighted a number of factors that are driving change in the industry, with regulation seen as chief among them. Adapting to regulatory change was cited as a key driver of change by nearly two-thirds (65%) of respondents. Pressure on margin and costs was cited by nearly half (48%), while the rise of passive investing was identified by 39%.”