May 17, 2021 | Financial Industry
In the post-pandemic world, business has moved from mostly toying with new virtual models to full adoption in just 18 months. For example, virtual meetings and remote work were outliers before COVID-19 but are now clearly here to stay, many brick-and-mortar businesses have fully embraced digital, even restaurants have moved menus online and adopted their service models to accommodate a much wider array of dining options.
Change in the asset management world is accelerating at an exponential rate, too. Much like the upheaval brought on by the 2008-2009 Global Financial Crisis (GFC), COVID-19 is serving as the accelerant to ignite a paradigm shift in the way asset managers do business—and technology will play a key role.
By most accounts, the asset management industry is set for growth, with forecasts predicting robust increases in assets under management (AUM) for the next several years, but that growth will likely be uneven.
According to “The Fourth Industrial Revolution is here—are you ready?,” a report by Deloitte, technology will be the biggest differentiator between businesses in the coming decade. Successful business leaders must harness the full potential of smart technologies to enable holistic decision making and new business models. Those who don’t innovate in this manner risk falling irretrievably behind.
Asset managers have been facing changes to fees structures, product options and regulations for some time. Each of these areas has resulted in squeezed margins that incrementally increases the urgency to achieve new operational efficiencies. Yet, the asset management industry has famously been a technology laggard.
In the present economy, asset managers may have an unprecedented opportunity to embrace the transformative impact of AI-based technology on their business models and to allow innovation to drive their futures.
Data—lots more of it—is a major driver behind the need for this transformation. Those asset managers that successfully harness data will gain several competitive advantages. However, data is useful only if it can be successfully interpreted and adjustments made, in real time, based on what was learned.
Redi2’s new AI-based Revenue Forecast features within Redi2 Revenue Manager™ helps our asset manager clients embrace technology that integrates all areas of their businesses and plays a major role in accurate strategic forecasting, while minimizing challenges.
Our Revenue Manager Forecast model was built to encompass both econometrics and machine learning (ML) techniques. Here are some of its benefits:
While most asset management firms understand they need to invest in advanced technology to drive new, ever more complex business models, making the leap from the familiar to the innovative can be challenging. The post-pandemic environment may present the perfect time for firms to finally embrace the value-add that strategic technology can bring to their businesses.
If you think it is time to upgrade your forecasting and billing processes, our Revenue Manager experts would be happy to give you a guided tour of our software solution. Contact us at email@example.com. Redi2 Technologies, Inc. is the pioneer of the Software-as-a-Service (SaaS) delivery model for financial services billing solutions.