How to utilise technology to best serve investors and grow business

20 March 2014   Category: News, Asia, Global   By Asia Asset Management

SimCorp has published a new white paper, titled “Leveraging Advanced Technology: Is Your IT Platform Geared for Increased Competitiveness?” Authored by Anders Kirkeby, global domain manager for system architecture at SimCorp, the paper is part of an ongoing series of industry thought leadership, compiled and published by the tech outfit.

The paper outlines how a lack of investment in core systems can lead to missed opportunities as the industry inevitably shifts faster than firms can adapt when operating on outdated infrastructure. Mr. Kirkeby highlights five ongoing technology trends that will shape the future of how the investment management business operates and interfaces with clients:

  • Cloud computing variants and cloud based service models;
  • Global operating model considerations in view of cloud offerings;
  • Increasing volumes of fast-moving multiple-source data;
  • The growing importance of user and customer experience, especially on the web and via tablets and smartphones;
  • Greater security concerns as systems open up to offer user experience improvements.

Mr. Kirkeby encourages buy-side firms to replace legacy systems. “It may be tempting to try to ride out this time of high market uncertainty and low margins by cutting IT budgets and sticking to existing systems and capabilities. This may work better for some more than others, but generally it’s a risky path. Investing in a flexible, integrated platform will not only enable firms to add new technology incrementally to gain better risk control, but it will also improve cost efficiency in business or IT operations and offer clients or internal users innovative solutions to drive growth.”

“To succeed in growing the business scale, the ability for firms to be client focused and leverage advanced technology is an important competitive differentiator. Unfortunately, reliance on legacy investment management systems often prevents firms from achieving this goal,” states David Kubersky, managing director of SimCorp North America. “This is one of the key reasons why SimCorp’s technology approach is backed by an over 20% investment of annual revenue in research and development and a perennial guarantee of two software releases per year. Our goal is to ensure that our solution is evergreen and will never become legacy technology, keeping up-to-date with industry, regulatory, accounting and other changes.”