Fund management gets aided by technology. The pandemic of Covid-19 has hastened the development of these technologies. Many asset management operations, including data management, risk assessment, market research and analysis, asset trading, and customer service, are becoming more automated. Fund management gets improved through several cutting-edge technologies.
- Artificial Intelligence
With the introduction of Robo-advice, AI has already impacted asset management. AI-powered automated service delivery and robotic client service delivery have begun to be implemented by investment management firms.
Artificial intelligence can improve the entire value chain in fund management, from sales and marketing optimization to predictive market modeling and portfolio management based on real-time processing of massive data, to bots for transaction processing across the entire middle and back office. Artificial intelligence bots improve transaction speed and efficiency while lowering labor costs, according to Joseph Stone Capital.
- Blockchain
Blockchain is a distributed database of shared records for multiple users, built to improve security, transparency, and efficiency. Blockchain technology has numerous applications in human endeavors, including fund management. Blockchain’s capacity to store data in a synchronized and decentralized manner can aid fund management firms in meeting regulatory requirements.
Blockchain can drastically cut asset managers’ conflict costs, potentially lowering investor fees, according to Joseph Stone Capital. It can also help fund managers strengthen their data and identity security, as well as their regulatory compliance and reporting duties.
- Cloud Computing
Decentralized data warehousing gets aided by cloud technologies. Asset management firms are starting to move their operations to the cloud. With the support of cloud technology, corporations were able to decentralize their staff and implement work-from-home policies during the pandemic.
- Big Data
Delivering effective fund management services, such as equities management, mutual fund management, and fixed asset management necessitates the handling of large amounts of data. Manually analyzing large amounts of data is time-consuming, and the results might be erroneous and misleading. Big data technologies examine enormous amounts of market data and assess risks and possibilities for various assets. Assets research based on massive historical data provides valuable insights in spotting market trends and identifying assets that are rising and those that are falling. Knowing market trends can help you uncover profitable chances and reduce the risk of losing money.
- Technologies for Remote Work
The Covid-19 pandemic has created a new regular physical and social isolation. It has pushed technology in the workplace. People can now operate as efficiently and successfully from their homes as they would in offices, thanks to technological advancements. According to data, over 92 percent of investment management firms have begun implementing or are planning to use technology that allows employees to operate from anywhere without having to be physically present in the office. For seamless communication and transactions, digital channels get used.
Even after the pandemic has passed, digital contact will remain an aspect of doing business, particularly building consumer trust, loyalty, and market share. According to the Investment Management Outlook Report, cyber security and customer experience are considerations for organizations today and in the future, as 68 percent believe.
- Internet of Things (IoT)
The Internet of Things (IoT) is a network of interconnected computer, digital, or mechanical objects having unique identifiers (UIDs) and the capacity to exchange data without human or computer interaction. An IoT ecosystem gets web-connected devices that collect, act on, and communicate data from their surroundings using embedded systems such as CPUs, sensors, and communication gear. By connecting to an IoT gateway or another edge device, IoT devices can share the sensor data they acquire, which can then be forwarded to the cloud or evaluated locally.
Investment management firms are using IoT to run their operations more efficiently, collect data to gain a better knowledge of their consumers, improve decision-making, and boost the value of their company.
- Application Programming Interfaces (APIs)
APIs are software interfaces that allow two programs to communicate with one another. These software interfaces have already to get used in the banking business, and the investment management sector is beginning to accept them as a way to communicate with industry service providers. APIs make it the best data or content source without relying on a third-party provider to aggregate it. As a result, fund managers will not need to create much of their infrastructure for large amounts of industry data and APIs.
