What are the possibilities if Asset Managers take a leap forward?
How many more Asset Managers out there believe that they need to engineer their own version of a performance or client reporting system, portfolio management system, implement securities or even trading operations (both highly standardised businesses)?
Is it in anyone's interest to help them stop reinventing the wheel?
Asset Managers may fear a totally new model to be too disruptive, and may only engineer a slightly better version of their current wheel
Consulting companies that provide advice have a business model based on the length of their engagement
Some platform providers' revenue model is also based on time and material, meaning that they have a lower incentive to provide simplicity
What are the possibilities if Asset Managers take a leap forward? They could fully focus on their differentiating factors. This means that talents and investment in technology are not wasted but instead reallocated to services, products and innovation that are relevant to clients and that add value long term. Everything that is non-differentiating, i.e., a commodity like electricity, is or can be outsourced. Scalability or flexibility would be a given.
So, why not invest in the next step for the industry? The current way of working will not sustain for long, and only a few key players understanding this, will still be around in 20 years.
What is stopping you from making the next step?