We recently sat down with Spencer Baum, Managing Director at SS&C Global Investor Distribution Solutions (GIDS), to explore how the firm is responding to the shifting demands of asset managers and their clients. In conversation with David Higgins, Managing Partner EMEA, Spencer shares how SS&C GIDS is delivering innovation at scale—through digital transformation, regulatory responsiveness, and a sharp focus on client experience.
This article is part of Citisoft's Solution Market Perspective Series
Spencer Baum: Like Citisoft, we have a vast array of clients that we're privileged to serve—both large global asset managers, all the way through to the smaller local ones. Our entire business segment is really focused on servicing that end client, whether that be across asset management, wealth, life and pensions administration—and across the world, whether UK, Luxembourg, Ireland, Canada, Australia, US, etc.
I don't think the two conflict. I don't think there's a play-off between servicing the asset manager and the end client, but servicing that end client does bring a different level of responsibility to our business, because it affects the brand, it affects the engagement, and it actually affects the manager's ability to retain and grow their business—whether that be corporate, institutional, retail. It's a key and integral part.
We have a unique responsibility in what we do—and whether that's transfer agency, fund accounting, middle office—all elements of the services that we offer.
Their needs are aligned, both the asset manager and the end client, and that revolves around a couple of things. For example, digital, whether it be the asset manager providing oversight, or whether it's the retail client logging onto their app to do a transaction. Being digital-first is important for obvious reasons but also making sure that we have the scale to support both.
For example, we have over nine thousand professionals supporting our clients today across this business. We've even got one thousand bots that are integral in that system, supporting it. But we also take two million phone calls a year, where you need to have the scale and the support to make sure that wherever a client is phoning—whether that's the asset manager or the end client—that they get someone on the phone to answer them, real-time and immediately.
So, in summary, I don't think the two play-off. I think they're aligned, and I think we have the tools and support to support both successfully.
SB: It's a good question, and like Citisoft and the way you work with advising, looking at target operating models, the design, the implementation—and we've done a lot of work together with a number of clients—we’re doing the same.
From our perspective, every opportunity is a challenge. Every challenge is an opportunity. But there are a lot of themes that are in play that lead to that. And, and I’ll reel off a few that I think are meaningful, in no particular order:
Whether that be the cost model—so clients wanting to make sure that they have the right basis in order to scale, in order to grow—and they need the right partner to do that, not just the partner that's looking at the most lucrative services.
Distribution is clearly at the forefront of the asset managers’ and our minds, whether that be new regions, new products. We're seeing a lot [of expansion] into new areas, whether that be geographically or across the wealth and the advice space, or tokenised funds, or LTIFS, LTAFS, etc.
Regulation is clearly having an impact as well, whether that be Consumer Duty, whether that be Fair Value.
There's definitely a desire to outsource more—and not just to move to a variable model from a fixed model—but actually to choose someone that can pivot and respond to the needs and the changes without having to navigate that themselves.
And then of course, technology—as a technology organisation, albeit I like to refer to us as a service organisation powered by technology—embedding that new technology into the ecosystem to support that offering, I think is really important.
Then last but not least, I'd say one that is at the forefront of every one of our clients’ minds is that client experience. And some of that is about differentiation, but obviously it's about retention and growth of that client.
So, there's some of the themes that I know you're seeing and witnessing as well.
SB: It’s multifactored to be honest. Probably first and foremost is the demand from clients—and whether that be you and I as retail clients, or corporates, or trusts, or institutions—there is a demand for immediate, real-time servicing, data insights, etc. So, there's definitely a demand.
There's a regulatory element to it, and regulation is both a push and a pull. Look at the move to T+1 as an example—it's moving the industry toward a more palatable solution.
Brand is increasingly important. If you're an asset manager and you have scale, you may have that ability to manufacture a lot of products. But actually being able to distribute it—whether that be through wealth channels, advice channels or institutional routes—the brand does carry weight. And having a brand that's associated with a strong client experience is important.
And then I think we've got the technology tools that allow it as well. You and I know, in our personal banking and the same applies in the workplace, it’s having the tools. Whether that be the mobile apps, whether it be the online system, whether it be the data feeds through APIs—actually all of that allows the client experience to be very different to where it was, you know, three, four, five years ago.
So, I think there's a bit of push and pull. There is the demand for it, but there's also now the ability to deliver it.
SB: We can't have one of these chats without talking about technology. Every headline we read every day is about AI—it’s the buzzword of the moment. Maybe I'll focus on the tangible use of AI rather than the theoretical, because everyone knows what it is. At SS&C we invest heavily in our ecosystem and use a lot of technology to change the architecture around that—creating the right microservices and ecosystem for our clients to benefit from.
We have Blue Prism, so robotic process automation. We've deployed over 1000 bots within our ecosystem over the last couple of years to benefit functions like cash management and reconciliations. This brings not just efficiency but also scale and accuracy to a lot of what's previously been relatively manual processes.
Using large language modules. For instance, we distribute and write thousands-upon-thousands of letters to unit holders every single day. Using robotics and large language modules is a massive help.
And then some of the AI components as well, whether that be our telephone operatives having access to find keywords, identifying Consumer Duty elements, using it around AML research, which you know is a not always the best client experience, but we think that differentiates it quite massively—using it within the advice journeys.
And we've even started using the metaverse, which albeit is a bit of a play at the moment. Yet when you actually look at the scale of it, it is mammoth and there is a real business case for distribution using that.
We recently did a town hall in the metaverse. All our employees joined as avatars and sat in the virtual cinema room and listened to the town hall. But if you look at companies like Nike, the sportswear firm, they had 35 million visits to their metaverse within the last year from 200 countries. And from Nike Digital—I wrote this one down because I thought it was quite interesting—26% of Nike's overall revenue comes through digital. That’s about $13 billion, which is quite outstanding.
It's a matter of time before that comes to the financial services industry and you're reaching a whole new audience.
So, for us at SS&C, it’s about embracing new technology, not just for the sake of it, but to actually solve problems, and also to open up new markets for our clients.
It's definitely client demand, and I think as the client mix—as the end client ages and the next generation comes through, there’s definitely a need to have that new technology to deliver solutions in a more effective way.
There are other factors as well. As you scale, as you grow, you need to have very controlled, efficient processes. Just offshoring isn't enough anymore. You need to, to bring get it right, and get it right first time.
And then, you know, regulation clearly plays a piece in it as we all remain compliant and as some of that regulation supports what we do.
So, a bit of all of the above.
It’s continuous to be honest. We're investing a huge amount every single year, both into new technologies, innovation, but also continue to be very acquisitive.
We continue to help our clients where we lift out and transform their businesses, whether that be here in the UK or further afield. That's a key part of what we do.
But we are using that technology quite extensively to look at how we further support and enable some of those solutions, whether that be through onboarding, you know: removing paper, the speed we do it. Ultimately to make sure that client experience from day one is effective all the way through their life cycle. And that's not just within asset management, that's within wealth management, that's the advisory business, the retirement business, as well as the pensions administration, for example.
For more information on what other solutions providers are doing in this space, read our Solutions Market Perspective Series