How can digitalisation succeed in asset management?

Guest article by Dr Harald Brock, Executive Manager/Managing Director, investify TECH

Today, customers receive digital solutions in almost all areas. The financial industry is therefore increasingly expected to provide corresponding services. The regulator is exerting pressure on institutions from the other side. What are the challenges in practice when it comes to successfully mastering digitalisation projects in asset management and reducing the regulatory burden?

1. Focus on your core business!

Focus on your core competences (such as sales, customer service and asset management), because that’s why customers come to you! Outsource burdensome (back office) processes.

2. Keep your eyes open when choosing a partner!

Choose providers with proven experience in relevant processes. Ask for reference projects and talk to active customers of the service provider.

3. Think one step ahead!

The demands on your IT are constantly evolving. Use partners with an open software architecture. This will allow you to simply “dock” new programmes in the future and permanently reduce interfaces.

4. Utilise the advantages of platforms!

Platforms with open interfaces (APIs) offer advantages. You receive a “ready-made” product that can be easily customised to your company. You benefit from favourable development costs, fast implementation and continuous further development – often even at no additional cost.

5. Have the courage to cut off old habits!

It is only supposedly efficient to keep developing an established system. Use solutions that are more efficient because they take work off your hands.

6. Do customised offers require customised software?

You offer your customers customised solutions – but does that mean you have to programme individual software solutions? They cost unnecessary time and money. With customised platform solutions, you can often achieve your goal better, cheaper and faster.

7. Too many cooks spoil the broth!

One solution for digital onboarding, one for the electronic mailbox, yet another for reporting. Even if you had always purchased the best solution, they all have to communicate with each other and be harmonised. End-to-end solutions offer you everything from a single source. You can save yourself complex system integrations and time-consuming interface management.

8. Regulatory requirements and digitalisation should go hand in hand!

An intelligent digitalisation strategy should also address regulatory aspects. This creates real efficiency gains and relieves you of manual tasks.

9. Mr Meier is sick!

Head monopolies and a shortage of skilled labour: a critical issue. Well-organised digital solutions work without the need for specific in-house employees in day-to-day business. This helps both with quantitative fluctuations in the workload and when individual employees are absent.

10. Wait and see and drink tea?

That’s certainly the worst approach. Develop a strategy to digitalise your business processes holistically. True digitalisation also means increasing the efficiency and scalability of all processes. Get to grips with digitalisation now – the benefits will convince you!

Published in Handelsblatt: https://live.handelsblatt.com/wie-gelingt-die-digitalisierung-in-der-vermoegensverwaltung/