Cloud as a Catalyst: Transforming Asset Management Operations and Client Experience

In today’s dynamic financial landscape, asset management firms are under mounting pressure to deliver superior investment performance, optimize operational costs, and provide exceptional client experiences. The cloud has emerged as a transformative force—far more than a technology upgrade, it is a catalyst for business innovation, agility, and competitive advantage. By moving beyond basic 'lift and shift' migrations, asset managers can harness the full potential of cloud to drive alpha, optimize total cost of ownership (TCO), and deliver differentiated client value.

Cloud adoption in asset management is no longer optional. The majority of firms now leverage cloud solutions in some form, driven by several key imperatives:

• Driving Alpha: Cloud enables access to advanced analytics, real-time data, and scalable computing power, empowering portfolio managers to make more informed, timely investment decisions.
• Optimizing TCO: By adopting best-in-breed cloud platforms across the investment lifecycle, firms can streamline operations, reduce infrastructure and maintenance costs, and focus resources on value-adding activities.
• Enhancing Client Experience: Today’s clients expect personalized, seamless, and omni-channel engagement. Cloud-based CRM and marketing platforms enable asset managers to deliver consistent, integrated experiences from prospecting through reporting.

To realize these benefits, asset managers must approach cloud adoption strategically. A robust framework encompasses platform selection, data-centric architecture, and proprietary solution development:

1. Platform Selection: Building for the Future

Platform decisions should be guided by a forward-looking vision, not just current pain points. Asset managers should evaluate solutions based on compatibility with their technology landscape, cloud preferences (including multi-cloud strategies), and the ability to support end-to-end processes. Leading firms are leveraging platforms for risk analytics and streamlined operations, while integrating best-in-breed SaaS solutions for CRM and marketing.

2. Data-Centric Architecture: Unlocking Insights and Agility

A data-centric approach is essential for scaling a modern, multi-cloud ecosystem. Asset managers should:

• Prioritize real-time or near real-time data solutions to support timely decision-making.
• Ensure scalability and ease of maintenance by leveraging cloud-native data platforms.
• Facilitate seamless data sharing across clouds and applications, creating a single source of truth while enabling multiple read copies for different use cases.
• Integrate with industry data providers through built-in or custom interfaces, supporting both traditional and alternative data sets.

This architecture not only supports regulatory and client reporting but also enables advanced analytics, AI, and machine learning—key drivers of alpha and operational efficiency.

3. Proprietary Solution Development: Sustaining Competitive Advantage

While off-the-shelf SaaS solutions address many core needs, proprietary tools remain critical for differentiation. Asset managers should invest in developing and managing proprietary research, modeling, and integration solutions that:

• Maintain the firm’s unique investment “secret sauce.”
• Provide unified user experiences across multiple products and platforms.
• Integrate seamlessly with both internal and external systems, reducing friction and manual intervention.
• Leverage next-generation technologies (AI, ML) to extract insights from both structured and unstructured data.

Cloud-native development accelerates time-to-market, ensures robust security, and provides the flexibility to adapt as business needs evolve.

Many asset managers have completed initial migrations to the cloud, but true transformation requires moving beyond simply replicating legacy systems. Cloud should be viewed as an enabler of:

• Real-Time Data Analytics: Cloud platforms provide the scale and speed to process vast data sets, enabling real-time portfolio analysis, risk management, and client reporting.
• Scalable Infrastructure: Elastic compute and storage resources allow firms to scale up or down based on demand, optimizing costs and supporting innovation without the constraints of physical infrastructure.
• Integration with Best-in-Breed SaaS: Open architectures and APIs facilitate integration with leading SaaS platforms for CRM, marketing, compliance, and more, creating a flexible, plug-and-play ecosystem.

To fully leverage cloud as a catalyst for transformation, asset managers should:

1. Identify Key Business Drivers: Clarify the specific outcomes you seek—whether it’s driving alpha, reducing costs, or enhancing client experience.
2. Align on a Transformation Approach: Use frameworks such as Evolve (incremental improvement), Jump (targeted reinvention), or Attack (disruptive innovation) to guide your journey.
3. Define Your Platform Model: Select platforms and tools that align with your strategic vision, support data-centric operations, and enable integration across the investment lifecycle.
4. Build a Data-Centric Organization: Invest in cloud-native data platforms and architectures that support real-time analytics, data sharing, and advanced modeling.
5. Develop Proprietary Solutions Where Needed: Focus on areas where custom development sustains competitive advantage, particularly in research, modeling, and client engagement.
6. Embrace Continuous Improvement: Cloud transformation is not a one-time event. Foster a culture of experimentation, agility, and ongoing optimization.

Few asset managers have fully realized the potential of cloud as a true differentiator. By adopting a strategic, data-driven, and innovation-focused approach, firms can leapfrog competitors, respond rapidly to market and regulatory changes, and deliver superior outcomes for clients. Cloud is not just an IT initiative—it is the foundation for the next generation of asset management.

Publicis Sapient brings deep expertise in cloud strategy, data architecture, and digital transformation for financial services. We help asset managers move beyond lift and shift, unlocking the full value of cloud to drive business growth, operational excellence, and client advocacy.

Ready to transform your asset management business with cloud? Let’s connect.

Relevant Links

• Five Asset Management Trends for 2023
• Five Asset Management Trends for 2023
• Regional Digital Transformation: Asset Management in Emerging Markets
• Personalization at Scale: Overcoming Data and Regulatory Challenges in Asset & Wealth Management
• Personnalisation à grande échelle dans la gestion d’actifs et de patrimoine : relever les défis européens de la donnée et de la réglementation (Europe)
• Personalización a Escala en la Gestión de Activos y Patrimonios: El Futuro para América Latina (LATAM)