Why asset management providers must embrace digital

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Buoyed by vaccines and government stimulus, albeit variants of Covid-19 looming as a potential headwind, the U.S. economy is recovering from the pandemic-induced slowdown in business. The asset management industry is buzzing with activity, as they take stock of all that might have changed and what has not in the post-recovery reality. However, some players have a distinct advantage. Through the period of disruption last year, when capital markets were highly volatile but still functioning without notable disruption, some forward-looking asset managers took the time to strengthen their digital and data muscle. They are now applying the advantage across the asset-management value chain – accelerating value for their business.

They are transforming distribution with data. Bringing together client, transaction and external data, asset managers are driving more accurate segmentation by relying on client-behavior data analysis to point the way. In addition to precision targeting that improves the efficacy of sales and marketing campaigns, the data fabric also serves to build a range of predictive algorithms to land personalized recommendations and new opportunities to drive growth faster. For example, last year, an asset management leader partnered with us to rebuild their algorithm models with a renewed data repository to better target customers whose preferences and risk appetite had changed through the pandemic. The transaction data also helps zero in on performance trends within the distribution teams, so firms can know which tactics and strategies work, and amplify them thereon.