Funds Europe, in association with Temenos, surveyed the industry on expectations for tech spending. Among its main findings:
Technology and operational requirements
- 56% say that technology and data infrastructure will be the focus of their investment over the coming 12 months; 47% say this will be on ensuring ESG (environmental, social and governance) compliance across their product range.
- 62% say cloud-based solutions are playing a key role in their IT strategy.
- 40% have started to use APIs (application programming interfaces) in the past five years. Only 8% have used APIs for ten years or longer.
- 83% of asset managers say they will extend their strategic alliances with asset servicing and tech partners, enabling connection of mid- and back-office services straight to their front-office tools and investment book of record.
- 42% say they will consolidate their outsourced relationships, employing a small number of service partners, in the coming two years.
- 60% say it is important to augment human expertise into artificial intelligence (AI) models; 50% say that AI must be ‘explainable’ to clients and to regulators.
- 60% say portfolio analytics and performance measurement functions will benefit most from the application of machine learning (ML) and AI; 57% say this will offer most benefit to data pre-processing.