MODERN TECHNOLOGY, A NEW BALLGAME: We are pleased to list at the bottom of this message the trending tech topics currently affecting the asset management industry that were emphasized at last week's trade group Roundtable in Boston, MA sponsored by Asset Managers Tech.
Equally important is the nature of the environment that Modern Technology is creating, as follows:
1) All major industries are lumped together in the current technology revolution. Cloud Providers, for example, simply do not differentiate when it comes to the global hospitality industry or the Department of Defense or firms in financial services; tech is tech no matter the business.
2) Modern Technology effectively means most professionals will be continuously working on improving their tech skills. It is likely that trading and investment professionals could be called upon to develop basic capabilities such as those relating to coding or programming.
3) World-wide movements like climate change endeavors and the ability to transport products on a nearly immediate basis are obviously dependent on the application of Modern Technology. Accordingly, these movements could end up competing, to some degree, with various global financial centers that are also reliant on technology resources to support their own growth potential.
It is clearly far too early to make hard and fast assessments of the long term consequences of Modern Technology. Nonetheless, Asset Managers Tech welcomes the opportunity to provide a broad-based forum to assist the investment management industry as it sorts out new technology developments.
Tech Topics Currently Trending in the Asset Management Industry:
COST CURVE AHEAD OF FEE COMPRESSION: The goal concerning the tech movement is to keep the cost curve ahead of a possible fee compression. Thus, it helps asset managers to look for opportunities in their adjacent businesses, such as custody or securities valuation services.
PACE OF TECH CHANGE: The pace of technological change is accelerating, so it is necessary for asset managers to keep up with this pace in every aspect of the business. This includes not only fund investing, but also services such as retirement and benefits solutions.
TECH TOOLS TO CUSTOMERS: Today's tech movement also entails investment managers' offering new "tech tools" to customers, such as "reporting services" to be used by financial advisers or hedge funds.
CHANGING HOW WE WORK: Regarding asset managers' own businesses, it is typically not enough to just use modern technology. It is appropriate in some instances for firms to change how they work. For example, setting up "hot desks", meaning squads of 5 to 10 workers in lieu of cubicles.
Joe Sack, President, Asset Managers Tech