Competitive forces and increasingly stringent regulations require that asset management firms analyze their processes and procedures to streamline operations. They need to reduce costs while simultaneously strengthening compliance.
Therefore, intelligent asset management companies – private equity firms, hedge funds, family offices, wealth managers – are increasingly implementing automation strategies. Their goals are to optimize operations, strengthen customer relationships, and keep the regulators happy.
As part of this process, they’re examining everything - the way they access and use data; customer interaction procedures; and governance, risk, and compliance management -- to see where automation will serve them best.
Overcome these Challenges with a Business Rules-based System
Asset management firms already have multiple technologies on which they have depended for many years, but generally don’t meet all their requirements.
Walk into any firm, and you’ll find a range of systems and approaches. On the applications side, you’ll find legacy mainframes, client server-based systems, and SaaS technologies. Data may be stored in the mainframes, on the cloud, within third-party systems, buried in spreadsheets, or even buried away in file rooms filled with paper.
To get out of the “seek and ye may or may not find” mess and embrace automation, they need to consider whether to take a “build, buy, or both” approach.
In an ideal world, every intelligent asset management organization would go with a homegrown solution, which ensures that everything is completely customized for the ways they do business. In that ideal world, custom software development would be quick, efficient, secure, low-cost, and exceptionally high quality.
“Bought” solutions are great – for about 80 percent of the general operations that every single asset management organization performs. One issue is the 20 percent that makes a single asset management company unique. The second is that regulatory requirements often change more quickly than lines of code, and the “bought” solution’s own development team may not be able to keep up quickly enough.
