Strategic Advantages

With the advent of new financial technologies and the blockchain technology, the current Market Forces are driving for a Change. This change can only be pioneered by DCI Ecosystem

The thorough study and research of the financial market has put the DCI ecosystem at a strategic advantage as it is well equipped with several technologies which will completely revolutionize the financial market for asset managers, wealth managers, and private investors.

An “Agile” Operating Model:

This is the hardest part for business to achieve and in most of the cases can take years to accomplish. Asset Management companies need to understand that the market is changing quickly and radically, become agiler! They need to adopt a holistic view and long-term vision and build a new operational model forward-looking and can take advantages of the new technology offer. New operating models should combine low cost with digital community engagement. The way asset management companies will engage with the customer will also change with the increase of investment in digital technology.

Outsourcing:

It seems that outsourcing has grown in the IM industry as companies have earned their trust using this delivery model. In recent years, many IM companies have begun to rely on full-service providers for essential office functions. The search for an optimal source of outsourcing has led these IM companies to review their operating models.

Managed Services:

It seems that outsourcing has grown in the IM industry as companies have earned their trust using this delivery model. In recent years, many IM companies have begun to rely on full-service providers for essential office functions. The search for an optimal source of outsourcing has led these IM companies to review their operating models.

Technology:

Technology will play a primary role to enable growth and maintain company profitability. An example is the cloud adoption to help cost optimization, reduction. A range of integrated automated technologies will need to be added to the capabilities sets such as robotic automation and artificial intelligence (AI) together with ledger technologies applications. Technological innovation has allowed many IM companies to access infrastructure and scalable integrated systems in a variable cost structure while reducing overall operating costs. Cloud computing technology offers the opportunity to move away from building an on-site IT infrastructure to host applications and data. IM companies around the world may be adopting cloud-based delivery models as the company seems to need more agility and lower costs in the context of the market pressures mentioned above.

The traditional inventory selection methods can be increased using advanced analytical techniques and alternative data sets to stay ahead. These investment managers looking for organic growth with a constant alpha generation should pay attention to the creative approaches that use technology and other sources of information to make investment decisions. Alpha Generation shifted its focus from portfolio experience and traditional financial analysis to increased processes, including quantitative and analytical techniques such as artificial intelligence (AI).

Artificial Intelligence:

Artificial intelligence and ledger technologies can unlock untouched economic possibilities previously inaccessible in the field of distribution strategies, streamline compliance practices, drive down operational risk and lead to more affluent client and employee experiences. In fact, many hedge funds and family offices are now using AI not only for investment decision making but also for finding better ways for executing trades. The number and type of alternative datasets seem to increase almost daily.

Robotic automation:

Robotic automation can help drive efficiency, lower costs, reduce risks and enhance accuracy. It can help from back to front office including the way Asset Management companies interface with their clients. Automation with robotic could be applied to anti-money laundering processes, reconciliations, reporting, on-boarding, and resolution of unmatched trades.

In the “MIT Sloan Management Review” (Deloitte’s 2017) digital trends study, only 40% of respondents from IM firms agreed or strongly agreed that their organization had a clear and coherent digital strategy It appears that a minority of IM firms are taking the first necessary step to shape their digital destinies. To add to these results, 63% of respondents at IM firms report that not enough time, energy, and resources are currently being spent implementing digital business initiatives.

Both results point to a future where most IM firms appear to be falling behind customer expectations for a digital experience and are not likely to catch up in the next few years. IM needs to develop a digital strategy to serve the Gen Y (Source) for the next 10 years when they will have begun to control significant investable assets estimated to 27$ trillion (the United States and Europe) next 15–20 years.

We believe DCI Ecosystem can add value and help wealth management industry transition to this new business model. The ecosystem will provide our clients with all the necessary instruments to take advantage of the most advanced digital and analytics technology such as Artificial Intelligence, Machine learning, Robo Advisor, Portfolio Optimization and the Blockchain to drive scalability, keep operational cost low, enabling scalability and maintaining competitiveness.

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