In recent years, the asset management industry has seen an increase in the buy side’s appetite for reduced architecture complexity and system consolidation, which is resulting in fewer platforms or even the pursuit of a single fully integrated platform. There is no one right approach. People, processes, and technology are interlinked with your business strategy. Metrics and indicators are also vital to mitigate risk, reduce cost and boost results.
Today’s firms are facing a new regulatory environment, new technologies, and an entirely new set of challenges and opportunities.
The business drivers behind this trend today is to pursue three main objectives:
- Improved data transparency and visibility
Letting the information flowed thought the organization, front to back. Reducing the proliferation of data, more data quality than quantity. That creates a culture of trust between the company.
- Reduce operational risk profile:
Not just to manage and mitigate risk, it is to be focus on reducing it. This means more controls on data access, use, distribution, and security. People want a single, high-quality source of data they can trust.
- Efficiency and cost reductions
Operational costs, resource costs, data costs. Basically, the opportunity to reduce overhead costs. Firms are looking for scalability at lower costs, which is driving investments by firms and vendors in workflow automation, robotics, artificial intelligence, and other new technologies. This need to squeeze more growth out of their platforms at lower costs are further driving firms to seek out opportunities for platform consolidations.
Fewer systems mean fewer software upgrades, simpler data integration, less manual intervention, and better data transparency—all of which have the potential to lower operational costs and risks. System consolidation may also translate into lower data acquisition costs thanks to fewer platforms, fewer users, and fewer requests for data from data providers. Finally, an integrated front-middle office, middle-back office, or front-to-back office could improve a firm’s response time when it comes to regulatory compliance or bringing new investments and products to market.
CGA’s mission is “Consolidation”, we understand the complexity of running a business. It is why we are dedicated to simplifying your life by bringing the latest smart technology to manage your information.
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