According to a recent article published by FSTech, more than half (54%) of “global asset managers believe that legacy technology systems are holding back attempts to carry out digital transformation programmes”.
This is the snapshot that emerges from a survey of 150 asset managers and fund administrators across Europe, the US and Asia by banking software company Temenos, in partnership with Funds Europe and Funds Global.
As many as 93% of participants saw investment in operational systems as essential to improve efficiency and reduce cost. More specifically, investment in new technology and digital transformation was identified as the number one focus in asset management, with 38% of respondents saying it will be their priority over the next 12 months.
Although asset managers appear to fully recognise the importance of digitising existing processes to improve efficiency, the results of the survey highlight a certain degree of hesitation and the presence of burdensome hurdles – especially related to integration or replacement of legacy systems.
When approached with an all-encompassing attitude, digital transformation projects can appear insurmountable, simply too big to tackle. The solution – as it is often the case – is to break down existing processes in smaller pieces, without losing sight of the objective and vision for the future.
By focusing first on the crucial step of client onboarding and implementing digital-first, highly automated technology that can be easily integrated with legacy systems, asset managers can kickstart their digital transformation journey in a manageable, efficient and cost-effective way.
Implementing changes aimed at delivering a smooth digital experience to all of their clients while maintaining on-going compliance with the latest AML regulations can help asset managers take the first steps towards a real, tangible modernisation.
At Know Your Customer, we specialise in providing flexible, scalable and dynamic onboarding solutions to financial services providers around the world. Our technology – which can be quickly implemented and easily integrated with legacy systems through APIs – is able to improve efficiency and strengthen compliance through the power of automation, making life easier for both compliance officers and asset managers’ clients.
If you are looking to embark on a digital transformation journey, we’d love to discuss with you why we believe client onboarding should be your starting point. Please contact us here.