The majority of North American and European institutional investors don't believe that their money managers are up to date with their technological capabilities, according to a report from investment consultant Greenwich Associates.
The report, "Reimagined Client Experience — Using Technology to Deepen Institutional Relationships," reveals that more than half of asset owners believe that their managers have not delivered on their technology needs and expectations.
"This is a critical issue for asset managers, given that technology is playing a bigger role in institutions' expectations about client service and its impact on managers' key business metrics like cross-selling rates," said Susan Gould, Greenwich Associates consultant and author of the report, in a news release.
So, what are asset owners expecting from their money managers? They want customizable online reporting tools, such as a user-friendly web portal with easy access to pertinent information such as detailed portfolio information and the functionality to perform custom analytics. They want customizable reports, immediate answers and frequent updates — and they want it in their preferred format. They also prefer a completely paperless process.
If institutional investors can't get all that from their money managers, then they may go elsewhere, since performance alone may not keep institutional clients satisfied.
"Clients are raising the technology table stakes," Ms. Gould said. "They expect information to be instantaneous and customized. Asset managers that proactively embrace new engagement models and leverage the power of technology will come out ahead."
The report noted that a money manager's technological capabilities will play an increased role in how institutional investors judge and choose their asset managers over the next three to five years.