“The evolution of the investment management industry is inevitable with the major innovations and advancements in technology in recent years. With technology at their hands, full potential of human capital can be put to use as they move up the value chain. The monotonous, routine and analytical works along with more complex data, trend and pattern analysis will be delegated to automation for its efficiencies, scale and cost benefits.
This augmentation will eventually allow business to derive more value from the same workforce as more time is spent on generating new ideas, interactions with clients and deriving decisions based on available information. We believe embracing digital disruption and technology companies will create more jobs than it replaces as the businesses will grow faster. The early movers will also have the time advantage to prepare their workforce for this new reality and take lead in this digital disruption. The future opportunities lie in the augmentation of human capital and technology rather than replacement of one for another.
The programs like IMAS DAP can play a crucial role in bringing the ecosystem together under one roof to ideate, innovate and implement the future of finance”
Enable: If you think about the entire value chain of an Asset Manager, today everything from distribution to portfolio optimisation is mostly in-house. Given the resource constraints each individual firm has, the quality of each stage of that value chain that an individual Asset Manager can pragmatically effect is challenged. Technology companies do one thing and one thing only within that value chain. If Asset Managers are open enough to clearly identify what they are good at and are willing to work with technology companies to source the parts of the value chain where their track record of capital efficiency, cost or performance is weak, it could greatly enable their stakeholder outcomes.
Transform:Some technology companies faced with the frustration of selling into a rather unsophisticated B2B buying process in the Asset Management industry are raising sufficient capital to compete directly across the whole value chain. They are going B2C and we will see a horde of new fully digital Schroders, T Rowe Prices from asset aggregation from retail clients all the way to capital deployment through global mandates. This will dramatically change the intermediation cost models that we see in the current incumbents from asset aggregation to deployment and make it really difficult for incumbents to compete.
Essentially, Asset Managers that learn to work with lean and cost-effective high performant technology companies will thrive given the strength of their franchise, client servicing models and track record while technology companies that manage to successfully challenge the incumbents across the whole value chain will usher in a whole new operating model.”
"Buy-side, investment managers are starting to recognise more and more the value of automation and are embracing technology to ease the regulatory burden. The collaboration within the IMAS DAP allowed ClauseMatch to better understand the specific challenges faced by the investment management industry, and to tailor its solutions to address their needs."
"We're definitely lucky to be among those 10 companies selected to join the very first cohort of the IMAS DAP accelerator in Singapore this year! The focus of this program provided us with invaluable experience in the form of live collaboration and mentorship with one of the leading companies in the industry - Aberdeen Standard Investments. It has formed a solid basis for our product development for the industry."