“The asset management industry is at a critical juncture in its history. After a decade in which fee compression and growth of index investing have driven sweeping change, these shifting economics are now converging with the relentless advance of regulation and disruptive technological breakthroughs.”

The heads of operations in capital markets and asset management are the primary contact for all asset operational activity, overseeing a substantial team of operatives and service specialists, delivering 24/7 asset operations within a robust, effective and efficient infrastructure with a performance, value for money (VFM) and customer experience focussed culture.

It is a high-pressure role, with the constant challenge of ensuring that your operations aren’t simply running but also running efficiently. Yet, the hurdles are many: rising costs for operations, fragmented data management, difficulties in scaling and lack of transparency. It is a job that requires balancing agility and precision but simultaneously having often to deal with manual processes and outdated systems that interfere with progress.

Key Challenges in Investment Management’s Operations

One of the more persistent issues faced is by the head of operations is the increasing cost of operations because of manual processes. Many organisations depend on legacy systems that require human involvement, with tasks such as reconciliation of investment transactions and portfolio tracking. These tasks can be automated, but more often than not, companies tend to follow the manual, traditional route which results in inefficiencies and high labour costs.

At the same time, the challenge of managing cross-departmental data flows can create more friction as teams become more isolated, leading to delays and confusion. Fragmented data, such as client reports, transactions or investment performance could hinder collaboration resulting in key information being missed, slowed down operations and added costs.

This issue is compounded when dealing with multiple custodians and third-party integrations. In the investment industry, collaborations across diverse platforms with varying data sets, reporting standards and processes can bring in discrepancies, especially when dealing with transactions and reconciliations. These inefficiencies further exacerbate the strain on operations, making timely and precise coordination vital.

As the number of clients and transactions also grows, scaling operational processes becomes more challenging. While growth can be seen as a positive trait, it would mean more data, transactions and complexity to deal with, plus without the appropriate tools, operations can get overwhelmed and riddled with errors.

With a lack of suitable infrastructure to manage this growing data, response times slow down which reduces efficiency, and damages both the client’s trust and company’s reputation.

Furthermore, a lack of visibility into client investment outcomes leaves operational teams in the dark regarding portfolio management. Real-time tracking is necessary to make sure that investment goals are met, and performance standards are upheld. Without this visibility, operational teams cannot detect issues early on, delaying corrective actions and mitigations while putting client returns at risk.

A study conducted by the Digital Transformation and Society supports this need for real-time monitoring and data analytics. Surveys conducted on operations and supply chain professionals revealed that real-time monitoring and data analytics are viewed as the most crucial tools for organisations.

“In response, asset managers are investing in innovation and reinvigorating their products and processes. As firms refine and reshape their middle and backoffice operations, they are reviewing a number of solutions that can help reduce risk, increase speed to market and create operating leverage. The asset management is an industry that’s transforming from old to new ways of operating and doing business.”

Leveraging End-to-End Digital Operations in Asset Management

While these challenges may feel deterring, they aren’t impossible to handle.

The key to overcoming these operational challenges lies in embracing automation. By automating crucial processes, high operational costs are reduced through the elimination of manual interventions and streamlining repetitive tasks, freeing up valuable time to focus on other core business functions. Automation doesn’t just drive cost reduction but also enhances efficiency and scalability.

As client bases continue to grow along with transactions, automated solutions, such as the end-to-end digital Investment Robo Advisor offered by MenaMoney Technology enables a seamless handling of large volumes of data without the need for additional staff. These automated and flexible solutions allow you to scale operations smoothly.

Furthermore, the solution’s ability to automate backend processes, such as transaction handling and reconciliation, ensures real-time processing, significantly reducing manual oversight and minimising operation strain. The technology also allows users such as the Head of Operations and their teams to access various features built to simplify tasks, as well as communicate easily with different departments within a company.

This is done by centralising data, which is provided as a solution to the problem of data fragmentation. By having a single point of access to all data, operations teams will no longer have to scramble through departments to find information. It also streamlines third-party integrations, enabling a seamless exchange of data with custodians and other external partners, reducing the risk of errors and delays. This centralisation enhances communication lines both within the organisation and externally, ensuring a smooth and error free workflow across all systems.

As for tracking client investment’s performance, real-time tracking tools gives you and your team complete visibility into how investments are doing. It is easy to quickly spot areas of concern, address them immediately and keep clients informed, building trust and improving satisfaction.

Ultimately, embracing automation through the Investment Robo Advisor offers a means to solve the most pressing operational challenges that Heads of Operations face today. By reducing inefficiencies, improving visibility and streamlining processes, the technology lets you focus all your energies on growth and competitive service excellence. It is simply the smarter choice for any organisation to become future-fit and future-ready for an ever dynamic industry like asset management.

Are you ready to elevate your operational services and meet demands with ease? Let MenaMoney Technology’s Investment Robo-Advisor streamline your operations and enhance client satisfaction. Contact us today to learn more.