Michael Spellacy, a New York-based senior managing director for capital markets and leading global asset manager for Accenture for professional services, said the "vast majority of asset managers are under pressure on the cost side of their accounts."
Spellacy therefore believes that three technologies will bring the best cost advantage for asset managers in 2020:
- The strategic use of cloud technology and the replacement or modernization of aging company-internal investment platforms.
- The deliberate use of artificial intelligence technologies in order to achieve cost advantages in customer care and in investment processes.
- Expanded use of outsourcing and shared services in middle office functions.
In April, the Bank of New York, Mellon Corp., New York, announced that it had partnered with BlackRock Inc., New York to provide integrated data, technology and asset management to the company's common customers. To provide service functions.
The move will enable BNY Mellon to integrate its data discovery, accounting and asset service tools into BlackRock's investment and operations platform for investment managers named Aladdin, a press release said.
Allen Cohen, digital officer of BNY Mellon Asset Servicing, said the partnership will enable companies to be more efficient, for example by helping front office managers and portfolio managers use Aladdin to get information from other businesses faster.
"From a portfolio manager's perspective, if you access things like available cash from half a day to a day earlier, you can make more informed decisions about your investment portfolio," said Cohen, a New York-based company.
He too has seen a trend among asset managers to cut their overall costs. One of the ways that companies do this is to find innovative data management methods that are becoming increasingly complex and extensive, but which are required for business operations, says Cohen.
Chicago-based money manager Nuveen LLC is currently investigating how it can use data to "determine where (business) opportunities lie and know a lot more about customers before we even enter," said Margo L. Cook, president of the global client organization, Nuveen Advisory Services.
While Ms. Cook expects efforts to "be used more in the area of wealth", this will also be relevant to institutional business, as these clients also want to know that money managers "know who they are before entering (a ) To meet."
In 2018, Nuveen, which had more than $ 1 trillion in assets under management as of September 30, implemented a new customer relationship management system to better consolidate and clean data, and to better understand customers, Cook said.
With the new CRM system, the company can examine a number of issues that are important to clients, from considering certain alternative asset classes to capital market forecasts.
"We are trying to ensure that we collect all of this information and address it more holistically," she said.
As money managers continue to evolve to better integrate technology into their business, the demand for professionals with this expertise is also increasing.
And as companies move to lower investment products and face higher operating costs, "the best technologists and data analyzers (professionals) are still expensive," said Alan Johnson, general manager of Johnson Associates Inc., New York.
Nevertheless, it is expected that remuneration for wealth management employees will average "slightly decrease" in 2019 from 2020, Johnson said.
According to a November 2018 report by Johnson Associates, end-of-year asset manager incentives, which include cash and stock awards, should remain at 5%.
"I think a drop in remuneration would probably be worse, but companies are still reviewing their workforce to make sure they don't have too many employees," Johnson said of the 2020 salary projections.