With the rise of sophisticated ransomware attacks and cyber threats, the private operations of asset management companies are weakened. There is a realisation that no sector is immune from cyber attacks. The wealth of financial data held by fund managers makes them highly attractive targets. Overall, the financial services industry has been focused on strengthening its defence mechanisms against cyber criminals. Investment management software, including financial dashboards, apps, portfolio management tools and tracking software are all designed to fit around the needs of asset managers and their clients.
But this isn’t without some downsides. Increased Applications, Mobile functionality, blockchain integration and emergence of banking-as-a-service have led to a growing number of cyber threats for organisations, but also a growing burden of compliance requirements. Asset managers are constantly facing new challenges associated with ongoing changes to EU regulations, GDPR (General Data Protection Regulation) and SFDR (Sustainable Finance Disclosure Regulation) are just two of the most recent examples. Fund managers, asset managers, insurance companies and banks face increased pressure to ensure accuracy in the collection of any client data and disclose their operations in a transparent manner. GDPR is reported to have generated €182 million in fines in 2020 alone – on top of evolving FCA regulations.
Regulatory environments are constantly changing. Tracking the evolving complexities of compliance can be both costly and seem like a waste of time. Without proper management it will become difficult to keep up with the pace of regulatory change and put your asset management firm in a vulnerable position.
However, meeting compliance requirements doesn’t have to be a cumbersome drain on time. With the right technology in place, it can mean competitive advantage– streamlining operations, driving efficiency, and closing security gaps. Key to this is the use of identity security which can automate processes and permissions in line with changing job roles and responsibilities. By adopting a rigorous approach to identity security, asset managers can position themselves as unique custodians of ultra secure financial services.