The evidence is compelling. Firms implementing comprehensive automation strategies achieve average cost savings of 20%, with some organizations reporting reductions of up to 50% in specific operational areas.
Here’s what caught our attention: Alpha’s 2024 Global Operations Survey of 57 asset managers with $30 trillion in combined AUM shows a clear pattern. Cost optimization activities increase dramatically with firm size, from 47% of smaller firms to 77% of large firms actively pursuing operational improvements.
The message is clear: the bigger you get, the more strategic automation becomes essential.
Understanding this pattern, the most successful firms have cracked the code. They’re using three key levers that work together:
When these three elements work together, something powerful happens: you create what industry experts call a “zero-based mindset.”
But does this actually work in practice? Let’s look at the proof points.
Fidelity Investments reduced procurement resources from 50 to 8 people while achieving over 20% savings, with a 50% reduction in time to contract. The investment broke even in three months.
J.P. Morgan’s COiN platform automates analysis of over 12,000 commercial credit agreements annually, reducing manual review time from 360,000 hours to seconds.
Luxembourg-based wealth manager achieved 30% reduction in operational costs by transforming reference data management operations through strategic automation.
These results demonstrate what is possible when strategy meets execution.
Given these results, what exactly enables such a transformation? Modern automation extends beyond basic digitization. Leading platforms leverage AI and machine learning to create intelligent operational ecosystems that:
The key insight: choose integrated platforms rather than disconnected point solutions.
Here’s the reality: successful automation requires comprehensive assessment of current processes, integrated platforms that anticipate future needs, and change management that enhances rather than replaces human capabilities.
But here’s what’s urgent: the window for competitive advantage through automation is narrowing. Early adopters are already seeing results while their competitors fall behind.
The firms that act decisively will find themselves well-positioned with:
The transformation through strategic automation represents a fundamental reimagining of how asset management firms compete. The evidence shows comprehensive automation strategies deliver transformational cost savings while improving service quality and reducing risk.
The question is not whether to pursue strategic automation, but how quickly firms can execute their transformation strategies.
The future belongs to the radically efficient.
Etops provides modular, end-to-end technology solutions across the wealth and asset management value chain, serving over 1000 clients throughout Germany, Switzerland, and continental European markets.
Contact us to discuss your automation strategy.