April 06, 2016

Eagle Releases White Paper Quantifying the Impact of Legacy Systems on the Asset Management Industry

Proprietary research highlights that the market is likely to witness a stronger willingness to adapt new technologies or explore outsourcing models and managed services

BOSTON – April 6, 2016 – Eagle Investment Systems LLC, a BNY Mellon company and leading provider of financial services technology, today announced it has released a white paper that seeks to quantify the prevalence of outdated legacy systems currently in use in the asset management industry. The paper also highlights how these platforms—employing obsolete technology and lending to inefficient operating models—serve to limit growth and new product development, while introducing unwarranted and escalating enterprise risk.

The white paper, “The New Growth Enabler: Letting Go of Legacy Systems,” reveals that 40% of respondents said that their organizations currently operate platforms that have been in place for a decade or longer. The research, conducted with the help of WatersTechnology, exclusively surveyed senior financial-technology decision makers. It also revealed that the top two operational challenges resulting from outdated portfolio management and accounting systems were the introduction of new investment instruments and decentralized operations, each identified by 43% of those polled. Absorbing added AUM growth and managing discrete regional requirements, were also each cited by a third or more of the respondents.

“As asset managers continue to be faced with increased margin pressures and regulatory headwinds, outdated legacy systems need to be addressed to ensure operations are backed by agile technology that can support the business and enable the firm to capitalize on growth opportunities,” described Diane McLoughlin, Chief Client Officer. “To succeed in today’s fast-moving financial markets and meet the expectations of customers and regulators alike, firms can benefit greatly from modernizing IT systems and deployment models. Operating models must also evolve for firms to take advantage of services that can provide the scalability and flexibility required to increase responsiveness and enable growth.”

Among the more notable findings from the survey:

  • 40% of respondents’ organizations operate a portfolio management and accounting system that has been in place for ten years or longer.
  • The top operational challenges identified include the introduction of new investment instruments (43%), decentralized operations (43%), discrete regional requirements (38%), AUM growth (33%) and M&A activity (22%).
  • 37% cited “organizational transformation” as the top priority for their business over the next two years, while nearly a quarter (24%) identified risk management. Cost-reduction initiatives (15%) and delivery of new products (14%) will also be in focus for asset managers in 2016 and 2017.
  • Almost 70% of survey respondents say it is extremely important for operations to respond to new business demands and challenges in today’s financial markets.
  • Nearly nine out of every ten executives polled (89%) noted that their current operating platform had limitations that require manual workarounds, and 71% specified that additional headcount would be required to support business growth.

The white paper is available to download from the Eagle website. Eagle will also be hosting a webinar with WatersTechnology on the same topic in early June.

Notes to editors

Eagle Investment Systems 

Eagle is committed to helping financial institutions worldwide grow assets efficiently with its award-winning portfolio management suite of data management, investment accounting and performance measurement solutions that are delivered over its secure private cloud, Eagle ACCESSSM. Eagle deploys trusted solutions and services that create operational efficiencies and help reduce complexity and risk. Eagle Investment Systems LLC is a subsidiary of BNY Mellon. Additional information is available at www.eagleinvsys.com or follow us on Twitter @Eagleinvsys. 

BNY Mellon 

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of Dec. 31, 2015, BNY Mellon had $28.9 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.