Integrating investment technology solutions is essential to running any asset management business. It requires capital investment and the right talent to do it well. To reduce cost and increase speed of deploying complicated investment technology solutions, the allure of a single platform that meets all needs across the front, middle, and back office is enticing. But the question remains- is there a truly viable one stop shop option out there?
The honest answer is- not quite yet but we are closer today than we have ever been. Scope and requirements dictate optimal solution design and it’s rare to find uniformity across all functional aspects performed across asset management organizations. The lack of standardization in key functional areas among asset managers makes building such a platform exceedingly difficult.
However, vendors and service providers hear the calls from the market and some are making serious investments to enhance their offerings. There are firms who are further along in building and integrating key components of a more holistic solution at a price point that works for asset managers. And there are others with a vision of being more like a one stop shop but haven’t quite connected all the dots yet.
Asset managers continue to face ever increasing fee pressure. Firms must look at all opportunities to rein in costs and operate in a nimble manner. Consolidating platforms and reducing points of integration risk is an excellent area to seek savings and solidify a foundation of efficiency.
Word to the wise- if you are contemplating investment platform design and consolidation questions, seek out a partner who has experience navigating these waters. A good advisor can help you focus on the decision criteria that matter to your organization and work with you to identify pragmatic solutions tailored to your needs. Diligence and experience are required to navigate potential gotchas and avoid the offerings that more resemble snake oil than a viable solution. Having a trusted partner who has been through the battles and knows where the potential landmines are located is a great way to get started.
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