Expert: SS&C Facilitator: David Barks
Headlines:
- The fragmentation and siloed nature of data across multiple legacy systems, leading to inefficiencies, high maintenance costs, and difficulties in meeting regulatory reporting requirements
- The challenges of integrating new technologies and achieving a unified platform, including issues with vendor overselling, failed implementations, and resistance from revenue-generating teams
- The potential benefits of leveraging technologies like cloud computing, robotic process automation (RPA), and artificial intelligence (AI) to improve operational efficiency and reduce costs
- The role of regulatory demands in consuming resources and hindering innovation, with discussions around data retention requirements and the need for better engagement with regulators
- The importance of a clear return on investment (ROI) analysis and buy-in from senior executives when considering major technology transformations
- The possibility of collective action or industry standards to drive technology adoption and integration across wealth management firms
Discussion:
The discussion covered the operational complexities faced by the industry, the need for technological modernisation, and the potential opportunities and challenges associated with embracing emerging technologies, particularly around the following:
Data management challenges
Participants discussed the difficulties in managing data across multiple siloed systems, leading to inefficiencies, high maintenance costs, and challenges in meeting regulatory reporting requirements. Key points included the fragmentation of data, the need for synchronisation across systems, and the burden of providing historical data to regulators, even when it was not originally required or retained.
Technology integration and adoption
The session covered the challenges of integrating new technologies and achieving a unified platform. Issues discussed included vendor overselling, failed implementations, resistance from revenue-generating teams, and the need for a clear return on investment (ROI) analysis. Delegates also explored the potential benefits of leveraging technologies like cloud computing, robotic process automation (RPA), and artificial intelligence (AI) to improve operational efficiency and reduce costs.
Regulatory compliance and engagement
Regulatory demands and their impact on resources and innovation were discussed with delegates highlighting the burden of regulatory reporting requirements, the need for better engagement with regulators, and the challenges of providing historical data that may not have been originally required or retained. The discussion also touched on the potential for collective action or industry standards to drive technology adoption and integration across wealth management firms.
Senior executive buy-in and ROI analysis
The importance of senior executive buy-in and a clear return on investment (ROI) analysis when considering major technology transformations was emphasised, as well as the scepticism and risk aversion among senior executives due to past failed implementations and the need to demonstrate tangible benefits and risk mitigation strategies.
Key takeaways:
- Conduct a comprehensive review of data management practices and identify opportunities for consolidation and synchronisation across systems
- Evaluate the potential benefits and implementation challenges of emerging technologies like cloud computing, RPA, and AI in improving operational efficiency
- Develop a clear ROI analysis and risk mitigation strategy for proposed technology transformations to secure senior executive buy-in
- Engage with regulators to better understand reporting requirements and explore opportunities for collective action or industry standards to drive technology adoption and integration
- Assess the feasibility of collective buying power or industry standards to drive technology adoption and integration across wealth management firms
