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Article

Open Access

An Investigation Into the Significant Impacts of Automation in Asset Management

Author(s)

Benjamin L. Britton, David G. Atkinson

Full-Text PDF Download XML 5362 Views

DOI:10.17265/2328-7144/2017.05.004

Affiliation(s)

Pearson Business School, London, UK

ABSTRACT

This paper explores the implications of applying automation, and a technological force in which computer systems can fulfill human tasks, in the asset management industry. The investigation explores a number of significant topics in which managers should begin contemplating, including workforce origination post automation and the primary skills necessary to facilitate augmentation, and how robot advisors could challenge an organisation’s value proposition. The investigation was centered on Jupiter Asset Management (JAM) to support their preparations for automation, as well as to provide insight from the “grass roots”. Research centered on interviews with experienced individuals within automation and asset management. The first interviewee was Simon Crawford, a Fixed Income, Multi-Asset Performance, and Risk Manager. The second interviewee was Daniel Hulme, CEO of Satalia and Advisor to the UK Home Office. Of crucial importance to the success of this investigation’s data analysis before and after the commencement of interviews, was the use of an analytical pattern matching produce, which examined qualitative information. The findings identify that current entry level occupations with systematic and repetitive tasks in a fixed domain, will be automated. Placing a greater demand for analytical abilities in junior recruits as the cognitive understanding of what data represents is a weakness of Artificial Intelligence (AI) thus strengthening augmentation between employees and technology. Automated investment profilers known as robo advisors will challenge the value proposition of organisations, such as JAM, which in time will need to be onboard with the technology to remain competitive within a growing millennial market. The paper concludes that there is an evident need for asset management firms to design training processes that blend enhanced senior level shadowing, with programmes focused on broadening juniors’ abilities to interpret and apply AI’s generated data through a series of newly identified skills.

KEYWORDS

automation, asset management, augmentation, robo advisors, future recruitment, talent development

Cite this paper

Economics World, Sep.-Oct. 2017, Vol. 5, No. 5, 418-428 doi: 10.17265/2328-7144/2017.05.004

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