With a New Approach to Client Data, There’s Smooth Sailing Again for Asset Management Firms


After years of smooth sailing in a relatively benign operating environment, institutional asset management firms are running into some strong headwinds. A recent Deloitte report* predicts that revenue growth in the industry will fall by half by 2021, and median profit margins will contract from 34 percent to 28 percent. The report warns that

“if investment firms continue to maintain their long-term proclivity to increase costs by 5 percent each year, aggregate earnings will shrink in absolute and relative terms”

That ominous combination of contracting margins and undisciplined costs has asset managers rethinking their operational approaches and searching for new sources of value. One of the first places they should look is in their client relationship data.

Many firms are losing millions of dollars each year in fees that they’ve already earned, simply because they lack full visibility into complex fee schedules. In addition, they’re squandering opportunities to open new revenue streams because their systems can’t deliver revenue-critical information in a timely fashion to the decision-makers who need it. And, on the cost side, they’re wasting huge amounts of time and money on repetitive, uncoordinated manual processes to retrieve and organize client information.

All of which is actually good news for companies that can see the opportunities and grab them ahead of competitors. A new e-paper explains how: Client Data: The Key to Unlocking Game-Changing Value for Asset Management Firms. Check it out to learn:

  • How CFOs and Client Services leaders can team up to drive breakthrough results
  • Why the status quo in managing client data is unworkable – and how to fix it
  • 5 features of game-changing client relationship data
  • 3 business challenges that are ripe for converting into competitive advantage

Short and sweet, this report is exciting reading for asset managers looking for new ways to leverage their data assets to thrive in a rapidly changing environment.

*Casey Quirk by Deloitte, 2016: Survival of the Fittest: Defining Future Leaders in Asset Management