Platformisation of Ecosystems: A Strategic Challenge for Asset Management Companies

Platformisation represents a significant strategic challenge for asset management companies, confronted with increasing technological complexity, strict regulatory requirements, and rapidly evolving customer expectations. Cyrille Mescam, Lead Enterprise Architect at Societe Generale Securities Services, explores the issues and opportunities related to this transformation, emphasising the importance of an integrated and collaborative approach. By overcoming these challenges, asset management companies can enhance their operational efficiency, foster innovation, and strengthen customer satisfaction. Surrounding themselves with enterprise architecture experts is essential in navigating this complexity and successfully transitioning to a more agile and interconnected operational model.

What is Platformisation?

Platformisation refers to the process by which companies create interconnected digital platforms, enabling the exchange of goods, services, and information among various stakeholders. In the asset management sector, this involves creating an ecosystem where asset managers, investors, regulators, and other stakeholders can interact seamlessly and efficiently.

Challenges of Platformisation for Asset Management Companies

Implementing a platform requires a robust and adaptable technological infrastructure. Asset management companies must integrate various systems, often legacy systems, while adopting innovative solutions. This complexity can lead to high costs and extended timelines, making the transition challenging. Moreover, for a platform to be effective, it must enable interoperability among different systems and stakeholders. Asset management companies must navigate a heterogeneous technological landscape, where standards and protocols can vary significantly. The absence of a standardised approach can hinder innovation and limit synergies.

Platformisation also relies on effective data management. Asset management companies must not only collect and store data but also analyse it to derive relevant insights. Data quality, security, and regulatory compliance are major concerns that require special attention. Furthermore, customer expectations are rapidly evolving. Investors seek personalised and transparent customer experiences. Therefore, asset management companies must rethink their customer approach by integrating digital tools that facilitate access to information and enhance interaction. This requires a deep understanding of customer needs and the ability to adapt services accordingly.

Finally, the regulatory framework in which asset management companies operate is constantly evolving. Platformisation must occur in compliance with regulatory requirements, which can pose an additional challenge. Companies must ensure that their platforms conform to current standards while remaining agile enough to adapt to future changes.

Companies must ensure that their platforms conform to current standards while remaining agile enough to adapt to future changes.

Benefits of Platformisation

By offering personalised and accessible services, asset management companies can enhance the customer experience. A well-designed platform allows investors to easily access information and manage their investments more effectively.

Despite these challenges, platformisation offers significant opportunities to asset management companies. By adopting a platform approach, they can improve operational efficiency by centralising processes and data, which reduces operational costs and optimises resources. Asset management companies can thus focus on their core business while increasing their agility.

Platforms also facilitate the integration of new technologies, such as artificial intelligence and blockchain, paving the way for innovative solutions that can transform how asset management companies operate and interact with their clients. Additionally, platformisation fosters collaboration among different stakeholders in the ecosystem. Asset management companies can establish strategic partnerships, share resources, and co-create solutions tailored to market needs.

Successful Examples of Platformisation

Platformisation has already demonstrated its effectiveness in several sectors and regions. For example, in Europe, some asset management companies have successfully created robust digital ecosystems that integrate financial and non-financial services, thus facilitating an enriched customer experience. In North America, the adoption of blockchain-based platforms has improved transaction transparency and efficiency. These initiatives show that while platformisation is a challenge, it also offers significant transformation opportunities.

Key Steps to Successfully Achieve Platformisation

To fully leverage the benefits of platformisation, asset management companies must follow several key steps:

1. Needs Assessment: Start with a thorough assessment of customer and stakeholder needs to define the features and services to be integrated into the platform.
2. Technological Choice: Opt for flexible and scalable solutions that can adapt to future market developments.
3. Data Governance Implementation: Ensure data quality, security, and compliance through the establishment of processes for data collection, storage, and analysis.
4. Training and Awareness: Train and raise awareness among employees about new technologies and processes to ensure team buy-in.
5. Monitoring and Continuous Improvement: Establish performance indicators to evaluate the platform's effectiveness and identify areas for improvement.

Sustainable Success in a Changing Market

The platformisation of ecosystems represents a strategic challenge for asset management companies, but also an opportunity for transformation. By overcoming technological, regulatory, and operational obstacles, these companies can not only enhance their efficiency but also strengthen their market position.

In this context, it is essential to work closely with experts capable of navigating this complexity. Asset management companies should consider partnerships with stakeholders who have a clear vision of the challenges and tailored solutions. By collaborating with enterprise architecture experts, they can benefit from a structured and strategic approach to successfully transition to effective platformisation.

Platformisation should not be viewed solely as a challenge but as an opportunity to reinvent the operational model of asset management companies, placing them at the heart of a dynamic and interconnected ecosystem. By adopting this vision, they will be able not only to meet the growing expectations of their clients but also to position themselves as leaders in a rapidly changing market.

Cyrille Mescam, Lead Enterprise Architect at Societe Generale Securities Services