At TSAM London, Ian Lumb from SimCorp discussed the critical challenges currently dominating the asset management space. These challenges include the widespread fragmentation of systems, significant legacy technology debt, and navigating the emerging landscape of AI. According to Lumb, the rise of AI presents both enormous threats and opportunities for asset management firms looking to boost efficiencies, but it must be implemented safely and in strict alignment with regulatory requirements.
In response to these industry pressures, SimCorp offers a solution that centers on a full front-to-back operating model that provides real-time oversight of both public and private assets, consolidating them all into one system. Lumb explained that this single-source environment uses smart technology to link everything from execution and decision-making to optimization and risk calculations. Furthermore, SimCorp is integrating smart AI technology to automate and operate some of the core workflows within the system.
The benefits of this integrated approach are quantifiable as an InvestOps report released this year demonstrates the tangible value achievable over a 12-month period. The report highlights that adopting this model can reduce the overall total cost of ownership, significantly increase efficiency, and reduce the “noise” within end-to-end workflows through smart automation.