Jan 30, 2023

The following blog post is one in a series of Cutter 2023 Trends that provide insights into industry challenges and considerations for our clients and member firms in 2023 and beyond.

For their client communications strategies, asset managers have personalized and digitized the client experience. And while this has been an area of focus for several years now, asset managers now find it even more imperative to enhance their client interactions. Given the volatility of the current economic environment and market conditions, client servicing teams feel the increasing pressure. Today’s clients want to concentrate on their asset allocation and look for transparency and insights on exposure ─ meaning more touchpoints between the asset manager and their clients.

Asset management firms still identify managing custom requests as a common challenge faced by client servicing teams. And since asset managers typically view client reporting as a key differentiator in their client relationship program, they tend to support client customization requests at any cost. But to meet these demands, asset managers have often relied on one-off unscalable processes.

Therefore, we expect asset managers to continue enhancing the client experience ─ specifically by investing in portal functionality and data quality. Many asset managers offer dashboard functionality in their portals, which, among other things, can provide exposure information to clients. But asset managers will continue to go deeper by bulking up portal functionality by persona, so that users receive access to information and can complete tasks based on their role. We expect portals to support documentation like letters of direction.

With increased focus on asset allocation, we also predict a corresponding increase in demand for RFPs and RFIs for asset managers and product development as firms expand their push to sell globally. To support these efforts, asset managers will build out additional portal capabilities, such as product and client onboarding functionality. Meanwhile, firms continue to work to get their data in order. They want a single source for presenting all types of client data and information with the proper disclosures for prospects and existing end clients.

Ultimately, as part of their client communications strategies, asset managers find themselves needing to accomplish all the tasks associated with supporting the client in a personalized way, with fewer people and less effort. And their continued investment in data and digitization will help them get there.

To learn more, read Client Reporting Systems and Client Portals Are Driving Better Experiences for Investors. Can Institutions Do the Same?, or contact us at [email protected].