The digital ecosystem in the time of Covid-19: a growth opportunity

Article published in allnews, 11 May 2020

In times of crisis, what matters is agility. Banks and external asset managers have had to put large-scale remote working plans in place in record time, a major challenge given the level of security inherent in the banking industry. It is still too early to assess the impact of the Covid-19 pandemic on our economies, and more specifically on small and medium-sized enterprises (SMEs) like external asset managers, but this exogenous shock will inevitably trigger significant structural realignments in the profession.

Most asset managers have adapted to the new environment remarkably well by changing their operating processes as part of remote working. Their strengths have always been personalised service and meeting client requirements, which implies close client proximity. But in the new world where personal contact is currently not allowed, digital communication has become key. 

Using technology to serve clients

This need to rethink communication with clients has presented a wonderful opportunity to get close to them virtually, while maintaining authentic service and personalised advice and, in light of the crisis, offering a more emotional element that reflects their personal circumstances.

The last few weeks have laid bare how dependent we are on technology. In the digital era, it is crucial for companies to grasp the importance of technological advances and to anticipate the impact these will have on economic models, so they can adapt their business models. The pandemic is acting as a catalyst to accelerate existing trends, while revealing the vulnerability of those who have not yet integrated them. Digitalisation offers superior positioning in terms of differentiation and added value, be it with client experience or efficiency gains.

Distinctive features and added value

The consequences of the pandemic are bound to hit revenues for most companies. Gaining a better grip on structural costs and efficiency gains will be crucial. Digitalising portfolio management processes, automated portfolio controls to ensure compliance with client ‘suitability tests’ and ebanking suites made available to end-clients are all concrete solutions for evolving towards a digital ecosystem, which is another way of saying a growth opportunity.

Now more than ever, it is time to show creativity in an unpredictable economic environment, just as it is essential to start preparing now for what comes after the Covid-19 health crisis. We can do this by assessing new opportunities, ways of working and tools of communication to provide real added value for clients – in all circumstances.