The ability to predict retail and institutional clients' needs to build a more customized range of products—basically a benchmark explicitly built for them—will be the future of product creation in asset management.
Risk management has always been a part of asset management. Still, the market appears to be riskier than ever as we enter the new year: A pandemic, a slowing economy, natural disasters, and nearly unparalleled political and social upheaval marked a turbulent 2020. Within the market, competition has been fierce, laws have been even more complicated, and the technological landscape has altered the competitive landscape even more. Here are top strategic enablers to help fine-tune 2021.
Enable Sustainable Cost Reduction
In the past, some businesses viewed cost-cutting as a one-and-done activity. However, the problem is much more serious and may have far-reaching consequences. According to reports, cost growth continues to outpace sales growth year after year. That means businesses should create a structure and a culture that ensures they are constantly fine-tuning methods, technology, and culture to improve their cost model and return on investment.
Embrace New Forms of Product Innovation
The ability to predict retail and institutional clients' needs to build a more customized range of products—basically a benchmark explicitly built for them—will be the future of product creation in asset management. It may be prohibitively costly to maintain such a structure today. Still, technology may one day allow this degree of personalization on a larger scale, and executives should begin laying the groundwork now.
Boost the Infrastructure's Adaptability
Operating model change is critical for asset management performance. Today, however, the transition is based on the ability to run the company with agility. So, how does one get their product and marketing departments to collaborate with the industry and technology talent to get products to market faster? It was appropriate to produce inventions and the value that came with them in two to three years in the past. Whether it is through an acquisition, a new product launch, or a major change program, companies now need to be able to produce value almost instantly. Any strategy must focus on delivering frequent incremental value.