Over half of asset managers surveyed have put investment in technology and data infrastructure at the top of their priority lists in order to generate growth in the wake of Covid-19 recovery, according to a new report – The Future of Investment Operations – commissioned by Temenos, a banking software company.
The report also found that 47% will focus on ESG compliance across their product range.
The pandemic has pushed firms to review their IT strategies and transition to the public/hybrid cloud. Around 62% say cloud-native solutions will play a key role in their IT strategy, followed by 48% targetting Software-as-a-Service (SaaS) solutions.
Meanwhile the use of open API (application programme interface) technology is a key goal for 46%.
“In mapping out the road to recovery, asset servicing firms and fund managers are increasingly looking to take advantage of the tools, analytics and scalability of the cloud,” says Barry Lee, Business Solutions Director, Temenos Multifonds.
In addition, the survey revealed that 83% of asset managers plan to extend their strategic alliances with asset servicing and technology partners. The aim is to strengthen the connection of middle- and back-office services straight to their front office tools and investment book of record (IBOR).
Artificial learning and machine learning are also set to play a growing role in delivering insights, both predictive and ex-post analytics, across the investment lifecycle.
The main applications for AI are portfolio analytics and performance measurement (60%), data sourcing, cleansing and enrichment (57%), and improving the operational efficiency of middle- and back-office processes (56%).
However, 60% also put boosting human expertise into AI models as a key goal in applying AI models. This is seen essential to deliver business intelligence in a clear and concise way to product teams, customers and financial supervisors.
©Markets Media Europe 2021