Don’t ask an asset manager for technology advice.
Investment firms voice concerns about outside technology challenging their daily business, but they don’t seem to be doing much about it, the Financial Times reports. It’s not like tiny startups are just chipping away at asset management, some big names are pounding down the doors. Yu’E Bao, Alibaba’s money-market business, has accumulated more than $90 billion in two years. Writes the FT:
“There is a lot of talk, but little action. Change comes at a glacial pace,” says Amin Rajan, chief executive of Create Research, the consultancy that published a report on this topic in February.
Not that asset managers won’t change anything, because they are tackling some of the more immediate fixes, such as making websites more user friendly or incorporating social media. But the really transformative changes are the ones that are harder to get by. Back-end technology needs to be updated, models need to be more efficient and transparent, and customers need to have smoother interactions with their managers and portfolios.
Dutch firm Robecco created an app that gives retail investors access to their portfolios with a link to a bank account. Aberdeen Asset Management has been working on the advice end, trying to make itself a go-to for digital education and retirement planning.
The asset manager that wins the technology battle will be one that can cover a range of characteristics, focusing as much on user experience, and the quality and convenience of service, as it does financial performance, the FT writes.
Photo: George Hotelling