"Out of intense complexities, intense simplicities emerge" - Winston S. Churchill
Highly unpredictable markets and intense geopolitical uncertainties make it difficult to keep a clear mind and stay focused on the longer-term priorities required to remain competitive and serve clients well in the years ahead. It takes resolve and a clear mind to see through the constant fog of unsettling market and political news.
Yet, through this persistent uncertainty, a clear trend emerges for 2019 and beyond, spurred by relentless margin compression, the need to perform and regulators advocating greater transparency. Leaders in asset and wealth management have understood the fact that they need to embrace digitisation in order to further systematise the way products are designed, portfolios built and solutions offered to clients. Leveraging technology to better and more efficiently engage with clients is no longer an option. It has become an ongoing obligation.
This should not come as a surprise. Few would accept boarding a commercial flight with no auto-pilot in the cockpit. Likewise, more and more investors will expect fund managers and advisors to use state-of-the-art technology in the conduct of their business, form running money to composing and presenting customised solutions. This is not to say that all money will be run purely systematically in the future. But smart technology helping humans make better decisions will play an increasingly important role for product providers, managers, advisors and clients alike in years to come.
While resisted by some, this trend is unstoppable and will cause measurable improvements in service, transparency and performance for many – something to look forward to in 2019 and beyond.
Happy New Year from ALPIMA