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You are here: Home / Executive Search Blog

By Robert Pestreich

Three Top Technology Trends in Asset Management

technology trends in asset management

Many regard asset management as a traditional industry, reluctant to innovate and adapt to new technology. But this is changing.

Enter Artificial Intelligence that provides clearer market insights, Big Data tools to analyze huge chunks of market data and evaluate risks and opportunities, and Blockchain for regulatory compliance.

These three technology trends in asset management are boosting automation of functions such as risk assessment, market research and analysis, and asset trading.

1. Big data
Effective delivery of asset management services such as mutual fund management, equity management, or fixed asset management requires access to analysis of large volumes of data. Thus, it makes sense for asset management agencies to incorporate big data analytics into their decision-making processes.

Big data tools can analyze huge chunks of market data and evaluate risks and opportunities associated with different assets. Asset management software programs driven by big data analytics are gaining popularity among asset and wealth management companies.

2. Artificial intelligence
AI, fueled by big data, provides descriptive market insights and recommends actions for the future to maximize return on investment.

AI can evaluate investment options by measuring the environmental, social, and governance (ESG) score of companies, acting as an indicator of their long-term sustainability. AI can also act as a robo-advisor, providing clients with investment advice without human intervention.

3. Blockchain
Blockchain helps to ensure regulatory compliance.  It is becoming synonymous with privacy and involves maintaining private, secure records, such as client information.  It can also be used to speed up transactions involved while trading or liquidating assets such as stocks and commodities.

Technologies like AI, powered by big data and secured by blockchain, will no doubt be more effective at making asset
management decisions and executing them. But, functions like devising a long-term strategy, complex decisions, and governing the technology require human input.

What  Technology is Not!

Technology supports asset managers in the decision-making process, primarily by organizing up-to-date and critical data
on portfolios. However, technology does not tell investment professionals what to do. It does not recommend the optimal level of risk in a portfolio. Rather, technology helps investment professionals measure their risks relative to the risk and return objectives specified by clients.

Read the full article: These 3 technologies are readily waiting to help you with asset management

THE ROLE OF TECHNOLOGY
WITHIN ASSET MANAGEMENT – Click on the image below.

technology trends in asset management

 

Filed Under: Asset Management

By Robert Pestreich

The New Recruiting World in Private Wealth Management

how to recruit talent in private wealth management

Seventy percent of financial services CEOs see the limited availability of skills as a threat to growth.

These days survival and success within this fast-changing marketplace demand people who are creative, digitally-savvy and can adapt quickly to constant change.

The Old Operating Environment

But few CEOs say they’re changing their focus on the skills and adaptability of their people. Companies in every industry usually have one thing in common. They hire for the operating environment that used to be. Talent is recruited for the world that was, not for the one that’s coming.

A new world is bearing down upon financial services. In no segment is this truer than in private-wealth management.

The question most hiring managers have failed to answer — How do I hire for a demographic that’s going to dominate my business for the next 30 years?

What follows is an overview of the new operating environment, the transformation already underway and the talent imperatives necessary to win in today’s world.

Click below on The New Imperative for Recruiting Talent in Private Wealth Management pdf to find out more and learn more.

how to recruit talent in private wealth management

Filed Under: Asset Management, Blog

By Robert Pestreich

Disruption, C-Suite & The Internet of Things

disruptive technologies

A 3D printer can build a 400-square-foot house in a day. A robotic barista at a café can serve 120 cups of coffee per hour, and embedded sensors are helping government agencies prevent motor vehicle accidents on crowded roadways.

Welcome to The World of Disruptive Technology

Once considered too experimental, disruption tools now impact everyone in the organization from C-suite to project leaders. Executives are recognizing the power of these technologies to improve strategy and deliver a compelling competitive edge.

The key drivers for adopting disruptive technology include the ability to innovate, revenue growth and profitability, according to a Forbes Insights and PMI survey of 537 executives.

Cloud solutions are among the most popular disruptive technologies in the Forbes Insights survey. Cloud was closely followed by IoT (Internet of Things), artificial intelligence and blockchain.

Consider The New IoT Mousetrap

A tiny rodent no longer stands a chance against today’s pest control technician who used to slack off on tending to his traps.

German multinational company Bayer has almost replaced the technician with its Rodent Monitoring System (RMS), a wireless network of sensory devices that attach to a plant’s existing mousetraps.

When an RMS device captures a rodent, it automatically alerts a pest control technician via text or email, enabling a fast and efficient response. Mousetraps are now The Internet of Things devices!

Read the full report: “The C-Suite Outlook. How Disruptive Technologies Are Redefining the Role of Project Management” –  Download it below.

“Disruption is real, and it’s impacting even the largest companies that used to be the most stable in the world. Today, there are almost no barriers to entry in any industry. Anyone can be a competitor.”

Filed Under: Blog

By Robert Pestreich

The New Breed of Asset Manager

New Breed of Asset Manager

There are blue skies ahead for the asset management industry and asset managers. But, clouds are also looming.

The threat of disruption is imminent. Automation and robo-advisory offerings are commoditizing large parts of the business.

The quest for scale is likely to see a wave of acquisitions and strategic alliances with tech companies shaking up the market in the coming years. Changing demographics and markets will thrust the asset management industry to center stage.

The rise in the volume of investable assets is set to increase from around $64 trillion today to $102 trillion by 2020.

Inspired by platform models in other industries, clients are also advancing new demands regarding the immediacy with which they interact with their providers. At the same time, regulators are doing their best to prevent consumers from being sold inappropriate products, often the most lucrative for providers.

The result? Regulatory costs continue to climb while fees are falling and a battle rages over ownership of clients.

Fundamental drivers of the new asset manager are:

• A new emphasis on cost, scale, and efficiencies critical to global success.
• Economies of scale. Some global managers will become mega-managers.
• Fewer managers who rely on commissions. They will need to develop alliances with fee-only distribution channels.
• Large alternative managers will need to fund their expansion by tapping the capital markets, or through strategic relationships.
• The gap between specialist firms and mega-managers, who compete everywhere on everything, will widen dramatically.

The Future of Asset Management Talent

  • Job seekers are no longer being asked to simply take standard data and analyze it better than competitors. Companies are now looking at the challenge of information itself – what to use, how to get it, and figuring out which questions it is best suited to answer.
  • Technical skills are essential. Firms need people who can create efficient, scalable tools to organize and analyze data. STEM backgrounds and coding skills have long been critical attributes in research hires.
  • Portfolio managers with expertise in investment and portfolio strategy across fixed income and equities will continue to be in high demand.
  • Compliance managers and data specialists continue to be hired while regulations get tougher and investments in technology increase.
  • If a volatile market prompts investors to pull their money, asset managers will face more pressure from competition.
  • Asset managers will put attracting and developing talent at the forefront of their efforts to retain and enhance their
    competitive position.
  • Across the firm, there will be the flexible use of technology allowing for economies of scale, specialization of needs and improved reporting.

Pressures on The Asset Management Industry

  1. COSTS – Rising costs of complying with regulation and commercial cost pressures will as firms grow their distribution networks.
  2. FEES – Fees will be under continued pressure amid the push for greater transparency and comparability.
  3. TECHNOLOGY – Investment in technology and data management will need to be maintained or increased to drive customer engagement, data mine for information on clients and potential clients, operational efficiency, and regulatory and tax reporting.

What Are The Gamechangers in Asset Management?

  • Regulation will hinder banks and insurers by forcing them to abandon proprietary investing and other core businesses.
  • As the world ages, retirement and healthcare will become critical issues that only asset management can solve.
  • Asset managers who are willing to see the client as their compass are set to thrive in this environment, while the rest are likely to face accelerating headwinds.

Conclusion

How do you know what you want to be if the vast majority of jobs that will be available in a decade or so don’t exist now?

In a job market where change is the one constant, and today’s knowledge may be tomorrow’s ancient history, how do you retain and even increase your professional value? The same way that enterprises remain competitive amid constant change:
By being adaptable.” – DXC.technology

Filed Under: Asset Management, Blog

By Robert Pestreich

FinTech Trends for 2019. A Brave New World!

fintech trends 2019

Disrupt. Democratize. Leveling the playing field. Equal opportunity. Entrepreneurial. A revolution.

Just some of the words and phrases that are currently used to describe the acronym FinTech, or the new financial technologies disrupting financial services and generally enhancing our lives.

Never Been Cheaper for Entrepreneurs
From crowdsourcing to mobile payments, there has never been as much choice for entrepreneurs as there is now. Crowdsourcing, for example, allows people with big ideas to get funding quickly and easily from anywhere in the world from people they have never met.

Far more agile than traditional banks, fintech firms can pass on huge savings, and innovate and adapt in a way bigger corporations can only dream of.

How Fintech Changed The Customer
The rise of the smartphone has massively changed the behavior of consumers. People now expect to handle financial affairs as easily and conveniently as they do their email or Facebook page. A huge opportunity for businesses, soon no enterprise will succeed without the right fintech services in place.

Institutions that take advantage of this new technology will experience an increase in productivity and a decrease in overhead costs.

2019 promises to be the year we see the culmination of some key technologies —  from blockchain and intelligent AI, to design thinking and the cloud.

Let’s take a look at 9 of the most significant trends to keep up with:

:: Mobile technology. As more and more people use mobile devices, financial services are going mobile. Lucky customers now manage their money without visiting a physical branch!

:: Digital-only banks. The strong trend toward mobile banking has resulted in many digital-only banks with no physical branches. They are particularly popular among millennials, who often use smartphones for financial transactions. These banks provide apps that let customers manage money on the go. No wonder, visits to bank branches are expected to drop in the near future.

:: Biometric technologies. With the digital age, the financial services industry is vulnerable to cyber attacks. Security is now a top priority. One way to prevent fraud is to adopt biometric technology. This technology also makes logging into an app easier and faster.

:: Blockchain: Beyond bitcoin.  The much-hyped technology upon which bitcoin and other cryptocurrencies are built, the blockchain, is a distributed, open ledger that can record payments or other transactions between two parties quickly, in a verifiable and permanent way. More and more fintech startups use blockchain technology because of its transparency.

:: Fintech digital vs paper currency. A new Bitcoin ATM opened in Las Vegas in February, making digital currency more acceptable. 

:: Artificial intelligence. Most experts agree that AI will have a great impact on fintech in the near future. There are various reasons.  AI automates tasks like data analysis, thus helping to save time. It also creates chatbots and robo-advisors.  Artificial Intelligence is at the center stage of fraud detection, customer analytics, and anti-money laundering solutions

:: Artificial intelligence for voice. We will see businesses use A.I. technology to develop new commerce interfaces. Consumers are becoming more at ease using digital assistants and several are now readily available for use in the home. Call centers are an example of where voice will excel, with bots being able to offer help and direct calls quickly and easily.

:: Collaboration: the new innovation. As big banks innovate, and start-ups struggle with regulations and getting new customers, collaboration is a necessity.

::  More Financial Startups, Solutions & ICOs. Fintech is on everybody’s mind. Corporations and startups are pouring money into young fintech companies, many of which prefer Initial Coin Offerings (ICOs) as their funding channel rather than traditional forms of funding.

Technology is transforming finance. The established, cautious institutions will indeed change how they do things. Fintech firms are innovative, daring, and increasingly successful. They are thriving, and they represent the future of finance.

Only The Beginning
With the fintech revolution, the banking industry, and its consumers will need to hold on for the ride. It will take some time for this technology to gain enough speed to become widely accepted. Only time will tell what we can expect when we visit our local bank.

RESOURCES

The Complete Beginner’s Guide To FinTech Everyone Can Understand
Fintech
The disruptive technologies driving start-ups and revolutionizing banking, payments, and insurance

Filed Under: FinTech

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