Improving existing systems, data management and risk management are top priorities for asset managers, according to Linedata’s fifth annual survey os the global asset management industry.
Existing systems for critical operations that still serve and support a firm’s business can be upgraded rather than replaced. This allows them to take advantage of new technology, features and benefits while minimising the cost and risk associated with replacing them.
When asked what would set them apart from their competition, many firms cited client service as a differentiator. Firms can distinguish themselves by the quality and expertise of the staff they have building relationships with clients. Client retention and client base growth can be found by providing an experience that aligns service with offerings valued by the client.
Deploying regulation once again is the top concern, while optimising operating models ranks as other crucial challenge for 2015.
While 48% of all survey respondents cited deploying regulation as their top current priority, 40% claimed optimising operating models as their main challenge. Firms continue to address the volume of regulation and the risk it poses for their business. As the industry continues to realise clarity around countless regulations, it can be expected that firms will further analyse and implement regulations during 2015.
Additionally, firms must take a close look at their business strategy and review their operating models to gain efficiencies, reduce costs, enhance client relationships, gain competitive advantages and respond faster to changing market and client demands.
“While buy-side firms continue to address numerous regulations, enforced over time, they must also deal with operational and associated reputational risks. They must effectively manage these risks without compromising their competitiveness in challenging environments,” says Mike de Verteuil, Business Development Director and Member of the Executive Board at Linedata. “At Linedata, we strive to deliver cost effective solutions and services that help our clients achieve this.”
The survey was deployed during the second half of 2014. Respondents were surveyed during Linedata Exchange events in Paris, London and New York, as well as through an online survey. With respondents from asset managers, hedge funds, fund administrators, banks, wealth managers and custodians across Europe, United Kingdom, North America and Asia, the purpose of the survey was to identify the challenges faced in 2014 and the priorities that lie ahead for them in 2015.
