Taking Stock of Service Provider Relationships: A Survey of Asset Managers

Top 5 key learnings from asset management firms surveyed on how operating models have changed as a result of the pandemic.

In partnership with

The events of the past two years have driven asset management ­firms to rethink their operating models and reconsider how best to make use of their personnel and resources. We worked with Ignites to conduct a survey of over 250 respondents aimed at measuring the distance between 2019 and 2022 and learning how operations in the asset management world have changed and will continue to evolve. Respondents to the survey were Ignites readers who are involved in operations, work with key service providers or oversee those who do to help pull together this snapshot of how the industry has changed.

The pandemic caused asset managers to re-shape their operating models in response to new workplace dynamics and changing client behaviors.

Increased remote
working / reduced
headcount

Material technology changes / upgrades

Simplified service provider model

Increased use of outsourcing

While quality remains a key measure of service provider performance, the pandemic has caused asset managers to increase expectations in other areas.

Responding to unexpected events

Data protection

Nimble processes

Operations strategy

27% of firms report using an integrated service provider model, and another 37% would consider use of such a model….

…while 26% of respondents favor a “best of breed approach”.

Key factors in favor of an integrated service provider model:

Quality
Cost
Simplification of the
operating model

Key concerns about an integrated service provider model:

Quality
Control
Cost

Data management remains an area of focus for asset managers

57% of respondents identify cybersecurity as their top concern

Data quality and managing volume are reported as top areas that require improvement

*The information above is derived from a survey conducted by Ignites, a Financial Times service, in partnership with BNP Paribas (2021). Ignites invited 65,000 readers who are involved in operations, work with key service providers or oversee those who do to participate. 267 valid responses were received (.04% response rate) to show this snapshot of how the industry has changed.

Market Trends

Did the Pandemic Motivate a Reevaluation of Operating Models?

The Covid-19 pandemic has caused asset managers to fundamentally reevaluate how they work and interact with clients and service providers.

Tech & Innovation

Data Protection Comes to the Fore

Asset managers continue to rank quality of service and cost as important factors when evaluating their service provider. But data protection and the footprint of the provider have increased in importance.

Market Trends

Is An Integrated Model the Answer for Asset Managers?

Nearly two-thirds of asset managers use or are considering using an integrated service provider, but asset managers need to make sure that they find a good match in their partner.