« The key challenge is how to enhance client loyalty and capitalise on their client capital »
How are asset management companies adapting their information systems to the spate of regulations?
What is at stake is the need to be able to comply with all the regulatory changes, while identifying those that generate opportunities for asset management companies and enable them to meet the expectations of investors. In this context, asset managers must make strategic choices as regards the types of services to be offered and the related organisational models: some have chosen to develop their own applications (alone or in partnership) as a means of differentiation, while others have opted to go down the outsourcing route for reasons of industrial efficiency. The outsourcing choice is not simply a question of size; by way of example, concerning the contribution to SCR Assets, some large asset management companies have opted for packaged solutions from outside service providers. It is more a question of deciding whether the asset management company can deliver value to its clients via customised support and service. In addition, only a handful of asset management companies are capable of developing suitable IT infrastructures (applications, datacentres, etc.), hence the success of Saas* mode reporting solutions offered by an increasing number of publishers.
How to leverage these investments?
Provided that the services are « tailor-made », it may be possible to bill investors for certain services related to regulatory changes, which would enable asset management companies to recover part of the cost of their investments in data quality and the industrialisation of reporting processes. But the key challenge for asset management companies is how to enhance client loyalty and capitalise on their client capital, while possibly attracting new investors. This is particularly important since in France clients are becoming scarcer: 2011 was marked by a 55 % fall in calls for tenders, which are at an historically low level.
*Software as a service