Asset Management: Transformation Is Already Here - Case Study

The company which did the report - BNY Mellon

About the company - BNY Mellon is a global investment company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment and wealth management and investment services in 35 countries.

Area of research-The Industry’s Data-Driven Future Has Arrived

Name of the organization which did the survey - BNY Mellon

Participants of the survey - 200 asset managers from around the world

Duration of the research survey - the third quarter of 2020

The main points of discussion in the survey:

• How Asset Managers See Their Future
• An Initial Snapshot of Market Thinking
• Asset Managers Unlikely to Go It Alone
• The Future Is Agile, The Architecture Is Open, and the Stakes Are High

Findings of the survey:

1. Five themes that illustrate asset managers’ perceptions of the industry’s future-

• Data determines destiny
• Digital imperatives dominate
• The product lineup is realigning
• The distribution game has new rules
• Focus on the core is key

2.  An Initial Snapshot of Market Thinking 

• 29% voted as ‘evolution of digital technology as the top trend in asset management over the next 3–5 years as identified by survey participants
• Combined with other digital concerns—data/analytics and tokenization—technology becomes the majority view, with 54% of respondents designating a technology-based trend as their top choice.
• Asset managers are evaluating their entire value proposition.
• Product- and market-related trends rank next in the hierarchy of asset managers’ thinking. 
• Growth of private markets, use of ETFs as a wrapper for active and passive funds, and integration of ESG criteria combine as the top trend for 37% of respondents.
• Increased rate of consolidation within the industry.

3.Asset Managers Unlikely to Go It Alone

• 67% of respondents in our research said they plan to increase their reliance on service providers as a way to meet their digital challenges.
• 67% are looking to leverage service providers to improve their operational efficiency.
• Outsourcing (Data Management Infrastructure – 97%, Back Office- 90%, Data Operation-78%, Middle Office-61%, Front Office- 41%): asset manager’s area of focus in the next three years

4.  The Future Is Agile, The Architecture Is Open, and the Stakes Are High

• Client demand for investment growth and performance has increased and, at the same time, has become more nuanced.
• Orchestrating solutions and information across the entire investment process. 
• Bringing together disparate data across the entire enterprise to gain new insights.
•  Enabling preservation of choice and flexibility through a modular, open-architecture, data-centric platform.
•  Building a provider-agnostic model that incorporates flexible technology for future providers and partners.
•  Creating a resilient, frictionless, front-to-back operating model that lets asset managers focus on their priorities.

Questions:-

1. The report was done by?

1. Standard chartered
2. Global markets
3. BNY Mellon
4. Synchrony

2. What is the title of the study report?

1. Achieving financial goals
2. Asset management
3. Social mobility
4. Economic growth

3.What kind of services are provided by BNY Mellon?

1. Auditing
2. Human resource
3. Banking and financial services
4. Investment company

4.Who did the survey?

1. Standard chartered
2. Global markets
3. BNY Mellon
4. globescan

5.When was the report done?

1. 2020
2. 2016
3. 2018
4. 2017

6.How many participants were included?

1. 200
2. 500
3. 600
4. 800

7._____% voted as ‘evolution of digital technology as the top trend in asset management over the next 3–5 years.

1. 45
2. 29
3. 62
4. 34

8.Which of the following is not among the five themes that illustrate asset managers’ perceptions of the industry’s future?

1. The product lineup is realigning
2. The distribution game has new rules
3. Focus on the core is key
4. Value proposition

9.Asset managers are evaluating their entire _____ proposition.

1. Value
2. Market
3. Online
4. Sale

10.____% of respondents designating a technology-based trend as their top choice.

1. 35
2. 54
3. 62
4. 19

11. Growth of private markets, use of ETFs as a wrapper for active and passive funds, and integration of ESG criteria combine as the top trend for _____% of respondents.

1. 12
2. 26
3. 64
4. 37

12. _____% of respondents in our research said they plan to increase their reliance on service providers as a way to meet their digital challenges.

1. 67
2. 72
3. 54
4. 39

13. _____% are looking to leverage service providers to improve their operational efficiency.

1. 67
2. 72
3. 54
4. 38

14. Asset manager’s area of focus in the next three years of outsourcing Data Management Infrastructure is?

1. 82
2. 74
3. 97
4. 68

15. Asset manager’s area of focus in the next three years of outsourcing Back Office is?

1. 90
2. 82
3. 56
4. 79

16. Asset manager’s area of focus in the next three years of outsourcing Data Operation is?

1. 56
2. 78
3. 92
4. 38

17. Asset manager’s area of focus in the next three years of outsourcing Middle Office is?

1. 34
2. 52
3. 75
4. 61

18. Asset manager’s area of focus in the next three years of outsourcing Front Office is?

1. 32
2. 56
3. 41
4. 25 

19. Asset managers see operational _______ as deciding factors in their ability to focus on generating value and to achieve growth in an already complex world.

1. Complexity and concerns
2. Inefficiencies and customizable
3. Inefficiencies and innovatively
4. inefficiencies and concerns

20. Which of the following was not a point of discussion?

1. How Asset Managers See Their Future
2. An Initial Snapshot of Market Thinking
3. Asset Managers Unlikely to Go It Alone
4. Cashless payment counters