Women Investment Professionals

Takeaways – WIN Series, 10/1/2020

What’s Important Now “WIN” Educational Series @ Zoom

Oct 1 @ 3:45 PM – 5:30 PM

The Impact of AI/Technology on the Investment Management Industry

Tech Challenges

  • Artificial intelligence and machine learning are on everyone’s radar; many firms are investing to enhance the customer experience, productivity, and generate alpha
  • Buyers have evolved to be more complex, mostly driven by retail changes
  • Investments in these differentiate the firm and generate sales alpha, reverse inquiries, institutional client tenure, and enhanced gross sales per investor

Where Are Firms Investing?

5 popular uses – “ABCDE of” AI in distribution:

  • Advanced productivity – cross-sell opportunities
  • Behavior segmentation
  • Customized content delivery
  • Data driven insights to improve client prospecting, onboarding, and retention
  • Mapping end to end client journey

How Do You Address the Data Challenge?

  • Data is a corporate asset; it necessitates talent and processing
  • Over 80% of asset managers: gap between strategy and realizing something from it. The disconnect doesn’t just exist due to technology, but also due to functions; need integrated marketing
  • Must understand user data consumption model

How is Technology Changing Due Diligence and Oversight on Investment Managers?

  • Risk, liquidity, performance (seek consistency)
  • Client experience – NEW part of due diligence
  • Can cover more with fewer people – “do more with less”
  • Scoring models can approximate a score for a manager without ever meeting them
  • Analysts prioritize different variables; ask for managers’ opinion on this too
  • Build more rapport because of data points; bigger sample set, can develop better expectations, i.e. likelihood of manager to retire, expectations for inflows/outflows
  • Consider: harder for portfolio managers to prepare for meetings when analysts have so much data at their disposal
  • Convert someone to a new asset class – via AI – need to ensure tech and product new – tie experience together

Covid-19 and The Adoption of Technology

  • Thus far, Covid-19 and remote work weakened the logic that you have to go into clients’ offices to convert them. Must be effective on digital platforms, engage people
  • Tech enables more efficient due diligence
  • Increased personalization – client journey and driving sales alpha
  • Fee compression likely to continue
  • Blockchain use increased as a result of the pandemic
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