July 21, 2023
Tech-driven Transformation: Emerging Trends for Investment Managers
Senior Marketing Content Creator
Reading time: 5 min
OWINTALK | BEHIND BUSINESS, BEYOND NEWS
Thriving in times of economic and social volatility requires organizations to find new ways to scale productivity, invest in innovation, and grow and retain revenue. Investment management CIOs must adopt, trial or assess these top technology trends to influence priorities, strategies and execution, as per Gartner.
According to a recent study commissioned by Objectway, the private wealth sector’s earnings forecasts for 2023 point to another year of stagnation. But despite this stalemate, banks and wealth managers increased their investments in technology by 8.5 percent last year and will probably increase them by a further 9.2 percent by the end of this year. By aligning technology investments with business goals, firms are leveraging IT as a strategic partner in navigating the challenges of an ever-changing environment.
Unlocking the Cloud’s Potential
First and foremost, the adoption of cloud technologies offers investment management firms the opportunity to leverage industry-specific cloud platforms. To ensure high operational continuity and performance, firms should rely on tech partners who are able to offer a solid experience and track record in integrated application and infrastructure management, and providing a tailor-made multi-cloud approach, exploring specialized cloud platforms for the investment industry.
The Rise of Hyperautomation & Enhancing Investment Management with AI and Robotics
According to Gartner,
Hyperautomation uses a disciplined approach to identify, vet, and automate as many business and IT processes as possible, and involves the orchestrated use of multiple technologies, tools or platforms to achieve business results. These tools include, but are not limited to, AI, machine learning (ML), robotic process automation (RPA), and event-driven software architecture, iPaaS, packaged software and process/task automation tools.
Automation has become a strategic priority for investment management firms. Investment firms’ executives should prioritize the identification, vetting, and automation of processes to achieve business results and streamline operations.
This is undoubtedly tied to centralised AI strategies,
As AI technologies advance, they will reshape how investment management firms operate, communicate and make investment decisions. Rapid technology advancements and multiple priorities make it difficult for organizations to capture and sustain value from AI initiatives. Effective AI operating models leverage current investments in people, processes and technologies to help drive successful AI initiatives.
In addition,
Data mining and ML are becoming essential capabilities within investment firms. As firms increasingly rely on the insights resulting from these capabilities and pursue increased democratization of data, CIOs are tasked to deploy repeatable processes and standardized ML models to reduce data model risk and unintended outcomes from model development, input and output.
Unsurprisingly then, the customer remains at the centre of firms’ viewpoint, and they can harness advanced analytics
Is the process of collecting and analysing customer data with the goal of better understanding customer needs, viewpoints and experiences with investment products and services. It can help you increase customer engagement and customer loyalty, understand and improve your customer journey and direct internal investment as well as sales teams to take action on issues that are affecting satisfaction and loyalty.
The journey towards Sustainable Investing is definitely one to take!
As sustainable investing gains prominence, investment firms must address growing investor interest and regulatory pressures. Players in the financial services sector should take a long-term view on investments, develop an enterprise-wide approach to sustainability, and implement an information and data strategy to measure and manage sustainability-related data effectively. In terms of ESG, firms need to measure and manage sustainability impacts, drive sustainable product and service development, and track emerging regulations. An enterprise-wide, cross-discipline approach is essential to delivering sustainability commitments.
This is just a glimpse. As Gartner states,
Increasing revenue is the topmost business goal from a digital business strategy for investment firms.
But
While increasing revenue is the top priority, the need to do so efficiently through cost optimization and risk management also requires new technology approaches, such as hyperautomation, MLOps and sustainable technology.
Much more is explored in the @Gartner® report “Top 10 Technology Trends for Investment Management CIOs in 2023”.
Get immediate access to the Gartner® report! Objectway offers you a complimentary copy.
Gartner, Top 10 Technology Trends for Investment Management CIOs in 2023, Ali Merji, 24 April 2023.
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
