Outlook 2022: Fenergo – Media Markets
Marc Murphy is CEO, Cengiz Kiamil is responsible for product strategy and Niall Twomey is CTO at Fenergo.
What key themes can we expect to see in 2022?
Change will be underway in the financial sector in the new year with some of the UK’s biggest banks, including Nationwide and Barclays, appointing new CEOs. With new leadership there is an expectation of change and with that new leaders will likely want to modernize from top to bottom. On top of that, digital transformation is likely to play an important role in 2022 as banks prepare to comply with ESG and other regulations while striving to gain customer experience and reduce costs.
What are your expectations for 2022?
The regulatory landscape for financial institutions has never been so complex. The speed of change is increasing and the lines between regulations such as financial crime, ESG, reputational risk and fraud, etc., are blurring. Operational efficiency and the focus on automating compliance will be central concerns for banks in 2022. Banks will not retain customers if they continue to spend a long time providing services. For too long, employees have had to manually re-enter the same customer information in disparate and numerous computer systems that do not communicate with each other. When it comes to data, the third party is the way to go, but the key to success will be how we set standards for auditing.
While still satisfying regulators, banks will take seriously replacing legacy technologies with technology ecosystems connected to APIs that streamline data management and policies to ultimately improve time to revenue generation and longevity. ‘client experience. They will be the best performing banks in 2022.
How can asset managers cope with the ever-increasing technological challenges in 2022?
Schroders’ acquisition of the trust management business of Rivers and Mercantile is just the latest in a long line of mergers and acquisitions in the industry this year. In 2022, it will be interesting to see if asset managers can eliminate long-standing tech headaches after some of these high-profile acquisitions. One of the biggest challenges following any acquisition agreement is data management. Even the most established companies have their data kept in siled systems, posing a clear risk from a regulatory perspective. Having information about clients, funds, and counterparties in different parts of the business not only creates a significant compliance headache, but it also means that the end investor is not getting the best experience. For any asset manager looking to integrate newly acquired funds, a centralized data strategy leveraging cloud technology is essential to bring all information together and maintain it consistently.