While the COVID-19 pandemic ushered in many changes across the asset and wealth management industry, some of them had already been gaining attention—the pandemic simply accelerated the trends. Recent months have brought new or intensified attention to issues like dated or old operational models, regulatory risks and an imperative to reduce costs. Many companies are looking to automation to address these challenges, represented by four mega trends in the asset and wealth management industry that have emerged:
- Shifting operational models—Asset and wealth management is always changing, and many firms struggle to adapt. The most successful firms create efficiency in the back office by digitizing their operating models to make the back office less dependent on humans and deploying intelligent automation processes and document automation in the middle and front office to increase efficiency and reduce costs.
- Industry consolidation—The record number of mergers and acquisitions we saw in 2020 is expected to continue through 2022. As these organizations blend together, they must bring their systems, data and disparate teams together, despite internal silos and resistance to change. Communication and consistency, facilitated by next-generation technologies, can help unify organizations.
- Increased regulatory and compliance burden— Investors assume their data is secure and private, and global policymakers are expected to require ever-higher transparency. Meeting the requirements of investors and regulators can increase risk and costs, but technology can help minimize those increases.
- Greater use of data—Data is the heart of all decision-making, and asset and wealth managers are increasingly looking to data related to sustainability, investor engagement and activism. While many companies focus on external sources of data, much can be gleaned from internal sources like hard drives and email through the use of technologies like artificial intelligence and machine learning.
SS&C Chorus delivers a unified suite of intelligent automation technologies, including Chorus Document Automation, the AI-driven document automation technology, Chorus BPM, an award-winning digital workflow solution, and consulting implementation and managed services to accelerate straight-through processing in complex, highly regulated environments such as insurance, banking, financial services, and health.
To learn more about the mega trends in the asset and wealth management industry, and how solutions like Chorus can help, download the full "Four Mega Trends in Asset and Wealth Management" e-book.