InvestOps Connect 2024: Key insights shaping the future of investment operations

Taskize recently had the pleasure of attending and sponsoring InvestOps Connect in St. Albans, UK – a forum for senior-level COOs and Heads of Investment Operations to come together to benchmark and discuss the future of the sector.  

We were thrilled to engage with industry leaders, share insights, and gather the latest trends shaping our field. 

Key takeaways 

• Upgrading analytics and automation for a global operating model

A recurring theme was the critical role of advanced analytics and automation in crafting a best-in-class global operating model. As firms expand their reach and scale, the ability to leverage sophisticated analytics and automation tools becomes paramount. These technologies not only streamline operations but also enhance decision-making capabilities, driving efficiency and competitiveness in a rapidly evolving market. 

• Enhancing data management to boost performance and cut costs

Effective data management strategies were highlighted as essential for boosting operational performance and achieving cost efficiencies. With the exponential growth of data, firms need to invest in robust data platforms and cloud technologies to ensure integrity, accessibility, and security. 

• Transitioning to T+1 settlement cycles

Another discussion point was the transition to T+1. Building a strategic roadmap for this transition is vital for firms to remain compliant and competitive. The move to a shorter settlement cycle presents both challenges and opportunities, requiring firms to reassess their operational workflows, enhance their technology infrastructure, and ensure seamless coordination across various functions. 

• Expanding capabilities for alternative asset investments

As the demand for alternative asset classes continues to grow, investment firms are expanding their operational capabilities to manage them effectively. This necessitates the adoption of new tools and processes to handle the unique characteristics and complexities associated with alternative investments. Firms that can adapt quickly will be the most well-positioned to capitalise on this burgeoning market. 

Key challenges identified by industry leaders 

During the event, a series of polls and discussions revealed the top challenges faced by investment operations over the past year.  

The top three challenges identified were: 

1. Cost efficiency – managing costs while maintaining high operational standards remains a top priority
2. Creating efficient processes – streamlining processes to enhance productivity and reduce manual intervention is crucial
3. Talent evolution – attracting, retaining, and developing talent in a dynamic environment is a constant challenge

Taskize takeaway: Connecting the ecosystem is key – from front to back. A cohesive and integrated approach across all functions is essential to overcoming these challenges and achieving operational excellence. 

Key technologies impacting the future operating model 

When asked which technologies will have the greatest impact over the next 24 months, the top responses were: 

1. Data platforms are essential for managing and leveraging the vast amounts of data generated 
2. Cloud technologies are crucial for scalability, flexibility, and cost-effective data management

Key drivers for greater collaboration across functions 

When asked what the primary drivers are for enhancing collaboration across functions, the results were: 

Taskize takeaway: Organisations are increasingly creating internal silos with dedicated IT, tech, and operational support for each business unit as managing operational capacity has become too complex.  

Key challenges in cross-functional projects 

Firms identified the main struggles in cross-functional projects as: 

1. Ownership – clear ownership and accountability are critical for project success 
2. Priorities – aligning priorities across different functions can be challenging
3. In-house builds – developing solutions internally can be resource-intensive and complex

The transformational impact of AI 

The potential of AI to transform operations was rated on a scale of 1 to 10, with the majority expecting significant impact: 

• 7 – 29% 
• 6 – 24% 
• 8 – 19% 
• 5 – 14% 
• 9 – 10% 
• 4 – 5% 

Taskize takeaway: The goal of AI is not to replace people but to augment their capabilities, creating more capacity and enabling them to focus on higher-value tasks. 

Audience Q&A highlights 

It was also great to hear some of the questions from the audience tackled at the event such as: 

1. “What tools and techniques are you using to manage data in your firm?” It looks like firms are exploring a variety of tools and methodologies to manage their data more effectively.
2. “Any experiences in outsourcing vs. in-house data management?” There are diverse experiences and preferences, with firms weighing the benefits and risks of each approach. 
3. “Is ESG more challenging from a data perspective or is it just more of the same/ a different flavour to deal with?” ESG data presents unique challenges, though some view it as an extension of existing data management practices. 

Final thought: Overall, InvestOps Connect 2024 provided invaluable insights into the current state and future direction of investment operations. For Taskize, it underscored the importance of several aspects of our platform: advanced analytics, robust data management, and strategic technology adoption in driving operational excellence.