How asset managers can harness tech to manage compliance costs

To set their regulatory digital transformation plans into motion, asset managers must optimize their operating models to be as agile as possible before inviting in a solutions partner to help them improve. Thinking of their operating model from a “whole office” perspective rather than fragmented across the front, middle and back offices gives them a better view into where data backlogs are slowing them down and which aspects can be optimized or outsourced.

When it is time to look for technology partners, asset managers should prioritize two traits that improve the prospects for long-term technology partner relationships.

First, seek out service-oriented providers with deep knowledge of the global markets and the regulations in which they operate. Technological expertise is crucial, of course, but asset managers need experts that are able to understand their business and guide them through the implementation and use of tools in order to realize the full potential of the offering.

Second, look for providers that can fulfill multiple technology needs within one solution. A holistic service offering provides a more complete view of how new technology is working within the asset manager’s operating model — creating the potential to improve operations across the enterprise.

As asset managers continue to seek growth, better data management and technology can help them navigate all aspects of the regulatory environment. In order to achieve their cost-management goals, forward-thinking firms are investing in outsourced relationships that provide a strategic platform on which to grow efficiently.

Dan Houlihan is president of asset servicing, Americas at Northern Trust Corp., based in Chicago. This content represents the views of the author. It was submitted and edited under Pensions & Investments guidelines, but is not a product of P&I’s editorial team.



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