Low interest rates and vigorous competition have forced asset managers to do more with less in recent years. Now, with the rise of passive investing, a growing regulatory burden and heightened complexity, the industry faces more cost pressures than ever before. In the next phase of cost-cutting, firms need to look for measures that can deliver not only bottom-line savings, but also top-line benefits.
The latest paper in our InsideOps series examines four opportunities that could do just that:
Outsourcing: Middle- and back-office outsourcing can help relieve scalability issues and reduce costs, while providing a platform for new investment strategies and products.
Robotics: Digital assistants can be used to dynamically manage resources and staff at peak volume, execute anti-money-laundering processes and resolve unmatched trades—with quick payback times.
Operating model changes: By eliminating redundancies, standardizing processes and reorganizing workflows, firms can set themselves up for future growth.
Technology rationalization: By identifying duplication and streamlining systems, firms can create a well-oiled technology machine.
Now is the time for asset managers to embark on the next phase of cost-cutting measures—one that delivers measurable savings and sustainable results.