Digital Transformation is dead. Welcome to the Implementation Era! Who will win the race?…
The role of technology in asset management has evolved significantly over the past 20 years. With the pressure on costs and regulation, the industry faces a need to reinvent relationships with Institutional Investors. It is the challenge Ffyn is focusing on.
Nowadays it is less about Digital Transformation and more about Digital Implementation, which means:
- Deliver the right information, at the right time and to the right investor
- Anticipate investors’ needs
- Go beyond hard facts
Deliver the right information, at the right time and to the right investor
Sometimes it seems our personal life benefits from better tools than at work. If Amazon is able to remind me to buy something at the right moment and send relevant content on my mobile device…. why is it taking so long to Fund Managers to be able to do this?
Therefore at Ffyn, we worked with BNP Paribas Wealth Management, Maif, Cardif and Generali on the opportunity to enable Investors to upload their buylist on our platform. It creates a virtuous circle:
- Asset Managers get notified about which investors got their funds
- Relevant funds info are streamed directly to Investors without any work from the Asset Managers
- Investors get notified when fund documents are added to our platform thus making sure compliance and regulation are on top of their list
For intance, Rob Bailey (Axa Investment Managers) said in an interview by Kurtosys : “From the way we manage our systems internally, to communicating with our clients tech touches every part of the business. As an organisation, we recognise the need to be efficient but also the importance of getting information across in a timely fashion. To some extent that’s the challenge our clients have. They get bombarded with information from asset management groups so we’ve had to make our communication with them much more interesting, relevant and timely in order for them to actually want to read our content. From that, we want to engage our clients in debate about good and bad ideas, or where they should and shouldn’t be invested.”
Anticipate investors’ needs
Digital Implementation is about making sense of data. We need Institutional Investors (Wealth Managers…) to focus on key issues and foster productive dialogue with Asset Managers.
Therefore when a political/social/industrial event impact a fund, Asset Managers who pro actively contact investors with their assessment will build trust and add value to the relationships. By saving time on fund documents processing, there is the opportunity to enhance service. It isn’t about funds/products …and more about sharing ideas and understanding investment philosophy.
In short, Digital Implementation is about anticipation of Investor’s requests. For example Ffyn aims at providing feedback to the Asset Managers about how Investors are consulting their information, ultimately we want to help Asset Managers in segmenting better Investors’ needs. Asset Managers welcome the opportunity given by Ffyn to tailor messages “Today it is difficult for us to segment our information, Investors feel inundated “ and to provide feedback during the fund’s lifecycle. “I have the Green light: an Investor selects my fund. Red light: he sells. But what’s in between?” . Digital Implementation is all about filling those gaps.
Go beyond hard facts
Finally, Digital Implementation is less about screens and more about human-to-human relationships.
At Ffyn we aggregate quantitative and qualitative fund information to allow smooth, direct and personalised interactions between Investors and Asset Managers. We firmly believe the post Digital Transformation Era will be more human – more powerful conversations, stronger relationships thanks to digitalisation of upstream work processes.
The originality of Ffyn is to mix Funds Distribution experts like Richard Jones (CEO Ffyn), Jean Devambez (Chairman and working for BNP Paribas) and a team who worked in Digital across many industries: Rodrigo Eliseu worked in Telcos & Travel, Julien Ravat in Health and Stephanie Griffiths adds expertise coming from retail banking, Luxury & FMCG. Therefore we put our users at the core of what we do thanks to design thinking, observation, testing…. which is also a novelty for the Asset Management industry.
Digital Implementation is all about filling those gaps.Digital Implementation is all about filling those gaps.
According to many research (Moody’s Investors Service, 2018) Asset managers will cede some control over distribution to big tech companies such as Google, Amazon, Facebook, Apple and Alibaba. Moody’s says user experience has become the primary factor in acquiring and retaining customers, and will be key in determining where and how consumers access their financial needs. Initially, they will likely provide financial services in partnership with financial incumbents to avoid the regulatory burden of manufacturing the products. But big tech firms might even use their online ecosystems to control a larger share of distribution and manufacturing in future….
It is now or never than the Asset Management industry need to sprint from Digital Transformation to Digital Implementation. Who will win the race?
Ffyn is now live, don’t hesitate to request an invite to test our platform https://ffyn.co/ and start implementing!