European buy-side firms look to automation, not AI
May 14, 2018

SimCorp has today announced the findings of a new WBR Insights European Buy-Side report. According to the ‘Buy-Side Operations: Cutting through Complexity' report, asset management firms are strategically addressing operational and data challenges, to dramatically cut the cost of operations.

The report finds buy-side Heads of Operations are opting for automation and consolidation, as their top cost-saving strategies for 2018. It says that a staggering 91 percent of Heads of Operations are reducing manual processes, followed by 67 percent consolidating systems, to bring down their firms' cost to income ratio.

Surprisingly, it says, this leaves trending technologies like robotics (Artificial Intelligence) and cloud strategies, trailing at the bottom of the list of investment priorities. SimCorp says the findings offer stimulating insight into the significant pressures facing the buy-side, as high operating costs and low-margins continue to bite into revenues. 

Produced by WBR Insights and commissioned by SimCorp, the report surveyed 100 European Heads of Operations from buy-side firms with over EUR 20 billion in assets under management (AuM), across the UK, France, Germany and the Nordics. It reveals the majority of the European buy-side are dialling back from the hype around fintech innovation, with 81 percent of buy-side firms overhauling legacy systems, as the top strategic priority for 2018. 

SimCorp says the results confirm an overwhelming concern amongst asset managers and institutional investors over cost control. It adds that the sentiment echoes an earlier WBR Insights report published in North America, signalling an industry-wide red flag on the current status of investment operations.





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SimCorp has today announced the findings of a new WBR Insights European Buy-Side report. According to the ‘Buy-Side Operations: Cutting through Complexity' report, asset management firms are strategically addressing operational and data challenges, to dramatically cut the cost of operations.

The report finds buy-side Heads of Operations are opting for automation and consolidation, as their top cost-saving strategies for 2018. It says that a staggering 91 percent of Heads of Operations are reducing manual processes, followed by 67 percent consolidating systems, to bring down their firms' cost to income ratio.

Surprisingly, it says, this leaves trending technologies like robotics (Artificial Intelligence) and cloud strategies, trailing at the bottom of the list of investment priorities. SimCorp says the findings offer stimulating insight into the significant pressures facing the buy-side, as high operating costs and low-margins continue to bite into revenues. 

Produced by WBR Insights and commissioned by SimCorp, the report surveyed 100 European Heads of Operations from buy-side firms with over EUR 20 billion in assets under management (AuM), across the UK, France, Germany and the Nordics. It reveals the majority of the European buy-side are dialling back from the hype around fintech innovation, with 81 percent of buy-side firms overhauling legacy systems, as the top strategic priority for 2018. 

SimCorp says the results confirm an overwhelming concern amongst asset managers and institutional investors over cost control. It adds that the sentiment echoes an earlier WBR Insights report published in North America, signalling an industry-wide red flag on the current status of investment operations.



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