A survey by Temenos has found investment in technology and data infrastructure are the most vital priorities for asset managers as they look to deliver a post-pandemic recovery.
The survey found that 56% of the asset managers’ investment will focus on these aforementioned areas over the next year, with 47% saying they will ensure ESG compliance across their product range.
The survey, which is titled The Future of Investment Operations – for Temenos – harvested the intentions of global investment professionals across the asset management sector, with the company finding that Covid-19 has driven many companies to scrutinise their IT strategies.
Up to 62% of survey respondents said cloud-native solutions will play a key role in their IT strategy, followed closely by software-as-a-service solutions at 48% and the open API technology at 46%.
The survey also found that 83% of asset managers claimed they will extend their strategic alliances with asset servicing and technology partners.
A key finding from the survey was that AI and machine learning are due to play a key role in delivering insights across the investment lifecycle. Respondents chose portfolio analytics and performance measurement (60%), data sourcing, cleansing and enrichment (57%) and improving middle and back-office processes efficiency 56% as the top applications for AI.
However, 60% of respondents stated that augmenting human expertise into AI models is viewed as a top priority in applying AI models – a capability that is ‘essential to delivering business intelligence in a way that is explainable to product teams, financial supervisors and customers’.
Temenos Multifonds business solutions director Barry Lee said, “In mapping out the road to recovery, asset servicing firms and fund managers are increasingly looking to take advantage of the tools, analytics and scalability of the cloud.
“Temenos’ SaaS-based Explainable AI (XAI), for example, enables our fund administrator clients to use AI to reduce manual interventions, detect potential breakdowns in workflow, and speed up exception management related to price movements. This future-proofs their operations against black-swan events and increases overall efficiency and productivity.”
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