One of the biggest themes that played out in 2023 for the asset management industry was a focus on removing the friction between the front, middle and back office. The industry recognises the huge value and opportunity in connecting data through the entire trade lifecycle - from idea generation trading, position keeping, valuation and reporting to clients and regulators.
Today’s technology offers a chance to define a new operating model that is better suited for the industry. By making this change, assets managers will be able to get crucial information where and when it is needed, together with achieving a transformative solution that overcomes the cost pressures the industry has struggled with.
In this new technology era, existing cloud technology is being pushed further than just being digital. By building a new blueprint in the cloud, many of the old obstacles are overcome. Investment firms can see through their data more clearly to identify new trends, product opportunities and create efficiencies that offer superior customer service.
The purpose of this blog is to offer our thoughts on how to take the first steps to move towards an operating model that meets the industry’s requirements for growth and profitability whilst providing a bridge to help you embrace innovation in the industry today and in the future.
How the cloud shifts the dial
Building in cloud native technology offers asset managers a once-in-a-generation opportunity to approach change through incremental innovation. This enables firms to change their current operating model gradually and with agility, overcoming challenges as they present themselves. Embarking on a strategic transformation in a modular manner allows delivery of incremental value while building platform capabilities which can be used again and again to accelerate the transformation journey over time.
HUB - a real-life working model proving the thesis
In practice, every client we support has a different problem to solve and we partner with them based on their needs. By solving one use case at a time, proving value, learning lessons, then moving on to the next use case means we can progress quickly and facilitate change in the right way. Many of our clients want an industry-leading, future-proof operating model that quickly offers value for now but also gives them the peace of mind that they are agile enough to adapt to the markets in the future. This is why HUB was created.
What does this model look like?
In short it is real-time, agile and flexible – sounds too good to be true, it really isn’t. We built an platform that shares rich data across the organisation in real-time, so business users have the information and insights they need, when they need them. Real-time data is so powerful and with embedded collaboration, it allows communication across the whole organisation in real time.
Event-driven workflows can alert users to exceptions on their “T” rather than “T+1.” With real-time data, firms are more able to keep up with volatile markets and unexpected events and business users have much more control, all of which adds up to better outcomes for clients.
These real-time capabilities are already here. HUB is applying these technologies right now to move from trade processing to exception management and an operating model that by design supports “T+0” processing.
Our approach gives portfolio managers real-time visibility of exposures and allows then to use natural language queries to interrogate the data they produce in real-time. And all of this at a price point that will be significantly cheaper than what asset managers are paying today.
New technology is the solution for competitive growth
Firms know that they need to change their current operating model as they continue to face upward pressure on operating expenses.
The key to HUB is being a useful and valuable partner. We don’t want you to outsource your operations, we want to understand how to overcome problems with the use of new technology across your entire organisation. This will in turn unify the different functions and allow for solutions to be impactful and progressive.