Confluence, specialised in investment data management automation for regulatory, financial and investor reporting and performance calculation and analytics, provided outlook on next year’s regulatory changes in the asset management industry.
It predicts the rise of RegTech in 2017 will trigger a transformation of the asset management back office.
RegTech consists of technologies aiming to facilitate the delivery of regulatory requirements faster and more cost-effectively than existing capabilities.
“Next year will be a pivotal year in the future of the asset management industry,” said Todd Moyer, Executive Vice President, Global Business Development at Confluence.
“While there are no quantum leaps that can be realized in one calendar year, we’ve already begun to see rapid adoption of the belief that RegTech will have transformative impacts on the industry. We believe this will be a multi-year process, but we also believe there will be fundamental changes that occur in 2017 that will set the stage for the reshaping of our industry,” he added.
Confluence foresees three major changes across the asset management industry next year:
• The RegTech initiative put in motion by UK regulators will spread globally as firms turn to disruptive technologies to manage new regulatory requirements
• RegTech’s promise will be the tipping point for achieving long-sought efficiency through automation in the back office
• Asset management firms that embrace RegTech will be better positioned for longer-term success as the industry moves into the era of digitalisation
“Implementing RegTech solutions is one of many steps that will change the way our industry works,” Moyer said.
“Achieving continued efficiencies through automation is just the beginning. The long-term trend is really about the digitalisation of the asset management industry and what that can deliver to investors. We expect firms will begin to look at how this shift will impact all aspects of their business, from investor engagement to what skill sets their staff will need to ensure the full value of automation and digitalisation is achieved by the business.
“Those firms that are beginning to embrace the positive disruption that RegTech promises for their business are the firms that will transform themselves and be best positioned to thrive in years to come.”