Asset management helps companies and businesses manage their wealth and investment portfolios to ensure their financial goals are achieved. Optimization of a company’s asset management technology is crucial for ensuring corporate business objectives are met.

As the world continues to shift and business strategies change, the asset management industry continues to evolve as well. As such, it is crucial for businesspeople to be mindful of changing trends and how they impact the industry in order to improve the effectiveness and profitability of their asset management services.

Understanding the changes to the asset management industry is key for staying ahead of the curve with investments. In this article, we will discuss 4 prominent trends facing the asset management industry today, as well as how the industry is changing and considerations for businesses to keep in mind.

4 Trends in the Asset Management Industry

Technology is constantly evolving, that includes the technology used within the asset management industry. Many of the top trends within the industry pertain to technological advancements and a greater emphasis on digitization.

Here is a quick rundown of the top four trends that are currently affecting the operational approach to asset management across banking:

  • Cloud-Based Asset Management: Cloud-based asset management allows for financial information and data to be stored in one central location and eliminates the need for expensive on-site software and servers that can otherwise run up operational costs.
  • Artificial Intelligence (AI): AI offers predictive technology that can much more effectively manage and predict risk and return forecasts, all while optimizing these processes through automation.
  • DevOps: DevOps allows for asset management providers to deliver technology and software improvements, updates, or enhancements quickly, without being barred by traditional barriers that have historically made asset management releases difficult to achieve at a fast pace.
  • Omnichannel Development: The channels through which clients and asset management providers communicate are incredibly important, and a focus on omnichannel development helps to provide users with the most value by employing the ideal channels at the best times.

Benefits of Embracing New Trends

Traditional financial tools are slowly being phased out and replaced with more technologically advanced systems and operations. Embracing new trends within the industry – such as those discussed above – is crucial for keeping up with competitors and ensuring investments are being optimized to their full potential.

Key benefits of utilizing cloud-based software, AI, DevOps, and omnichannel include:

  • Greater cost-effectiveness by uniting data and communication into one central location
  • Improved scalability to keep up with changes in demand
  • Increased speed of delivery and releases

Digitization of the asset management industry is likely to continue to increase in the years to come, and the sooner businesses and asset management providers adapt to these technological changes, the more set up for success they will be moving forward into the future.

How the Asset Management Industry is Shifting

As mentioned, the asset management industry is shifting thanks to the rise of new technologies and changes to traditional operational models that require business and asset management strategies to have greater agility and adaptability.

The innovation of new technologies, such as the cloud and predictive AI, signal a change in how investment strategies must be carried out in order to achieve specific objectives. Engaging with new technology and facilitating a business’ ability to adapt is key for asset management professionals to grow with the industry rather than fall behind.

Moreover, across all industries there has been a shift towards providing a much more client-centric service, forcing many businesses to re-think their business models to be more focused on their target audiences.

By focusing more on the customer, factors such as cost-effectiveness and speed of delivery become much more prominent and the need for new technologies becomes more evident as these are some of new tech’s main benefits.

Considerations for Asset Management in the Future

With the rise of new technology and shifts within the industry in mind, there are several considerations for asset management moving forward. For instance, user experience and UX design are likely to rise to the forefront alongside technological advancements, as clients of asset management providers will likely value ease of use when adjusting to the shift towards digitization.

Additionally, IT departments will become much more involved in other areas of business, especially when it comes to asset management. Having a team that understands both the technological and financial needs of a company will be critically important.

Final Thoughts

As the world changes, the asset management industry evolves with it. Understanding new trends within the industry is essential for establishing effective investment and asset management strategies. Plus, embracing new trends will set businesses and providers up for success as the world continues to shift towards digitization.