Asset managers in the Asia-Pacific (APAC) region are witnessing significant growth in Assets Under Management (AUM), driven by factors such as the expansion of the middle class, increasing affluence, and demographic trends, particularly in countries like China and India. To seize the opportunities presented by this growth and navigate the future effectively, asset managers are embracing digital transformation. This involves integrating digital technologies across their operations to enhance efficiency, productivity, and customer experience.
Key drivers behind this digital transformation include:
Operational Efficiency: Asset managers aim to minimize costs by automating manual tasks and focusing on value-added activities.
Digital Solutions: There’s a rising demand for digital platforms among investors, asset owners, and institutional clients for accessing investment information and managing portfolios.
Regulations: Compliance with regulations is easier and more cost-effective with digital technologies, such as adjusting to settlement cycle changes like the US moving to T+1.
Data and Analytics: Utilizing flexible, cloud-based data platforms enables asset managers to identify new opportunities, make better investment decisions, and simplify their technology environments.
Crucial trends shaping digital transformation in APAC’s asset management industry include:
Enterprise View: Asset managers are shifting from ‘best-of-breed’ to ‘Enterprise’ operating models, consolidating technology stacks, adopting cloud-based architectures, and leveraging outsourcing for digital innovations.
AI and ML: Asset managers are using artificial intelligence and machine learning to automate tasks, generate insights from data, and improve investment decisions.
Digital Wealth Management Platforms: Asset managers are developing personalized and seamless digital platforms to offer scalable, agile, and cost-effective wealth management services.
Data Strategy: Many asset managers are focusing on central data management to remove fragmentation, with key metrics including revenue growth, new client acquisition, customer satisfaction/retention, and reduced operating costs