The way we manage our financial assets is undergoing a technological transformation. New technology is a huge revenue driver, with 80% of wealth managers saying it drives growth. Significant changes in asset management — growing and maintaining investments to meet client goals — are driving this surge in tech adoption.
Firms managing assets must now evolve quickly. Today’s competitive market needs modern solutions to effectively develop, operate, and sell assets. This article looks at how the continued evolution of technology is changing the way asset management works and what new growth possibilities it’s creating.
Technological Advancements
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Artificial intelligence(AI) and machine learning( ML).
If you’re wondering, “What is asset management?” it’s the strategic process of creating, maintaining, and selling investments to enhance value and meet financial goals, and AI is making it happen. Here’s how:
AI and machine learning now power predictive maintenance systems. These systems spot problems with equipment before they happen, cutting maintenance costs and extending asset life. Companies like Siemens use these tools to prevent costly breakdowns.
AI also improves asset valuation and fraud detection. JPMorgan Chase uses AI to spot suspicious transactions, while Zillow uses it to make accurate property estimates. Asset management activities generated $59 billion for AI in 2024.
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Internet of Things (IoT)
Better connectivity and data tracking give IoT devices new capabilities for asset management. These devices monitor assets in real-time, including their location and condition. IoT sensors help the shipping company Maersk track containers worldwide, improving its supply chain.
Asset managers can now control the equipment remotely. GE’s Predix platform allows industrial companies to monitor the machines from anywhere, making operations efficient.
Valuable data collected by IoT devices helps managers make better decisions. The IoT asset tracking market is growing rapidly – from $5 billion in 2024 to $9.2 billion by 2029, demonstrating strong demand for IoT in asset management.
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Blockchain Technology
It’s changing how we manage and track assets using secure digital records spread across multiple computers. This setup stops fraud and creates authentic ownership records that cannot be tampered with.
Today, real estate companies are using blockchain for safe international property deals. Propy is taking this – they store permanent ownership records and do transactions digitally. The system also saves costs up to 50% since fewer middlemen are required.
Furthermore, blockchain makes tracing assets easier. Companies use it to monitor food from farms to stores and ensure its safety and quality. With Blockchain, people can buy small portions of expensive assets like real estate for investments. That means more people can invest with less money.
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Cloud Computing
Using cloud computing, managing assets becomes easier and more efficient. Companies can store and process vast amounts of data without paying for expensive equipment. Financial firms can handle transactions and reduce IT costs by up to 20% with services such as AWS.
Microsoft Teams can improve teamwork in the cloud. No matter where you are, you can quickly share information with people. According to about 70% of companies, cloud tools have made teamwork better.
With the cloud, people can work securely from anywhere. Today, many people work remotely, which is a great time to ensure that sensitive data is protected, yet the right people have easy access to it. Want better asset management? Think about moving your operations to the cloud.
Benefits of Technology in Asset Management
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Increased Efficiency and Productivity
Asset management is being automated. Trading systems now run trades automatically at the best prices, freeing staff to focus on critical strategic work. These computerized systems save companies money and better serve their clients.
Modern analytics tools allow managers to get instant market data analysis. Real-time analytics companies work 25% more efficiently because they can react quickly to market changes.
AI and machine learning also predict when assets will need maintenance. This prevents unexpected breakdowns and saves on maintenance costs. Manufacturing companies use these tools to monitor equipment health and schedule repairs before things break.
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Enhanced Decision-Making
Thanks to big data and AI, asset managers can make smarter investment choices. Machine learning products find patterns in the marketplace that people otherwise wouldn’t see. Now, many hedge funds use these tools to try to predict market moves better.
New risk management technology protects investments. Monte Carlo simulations show how portfolios would perhaps perform in different market situations. Companies using these tools reduce potential losses during market uncertainty.
Analytics tools also help optimize portfolios continuously. Real-time data allows managers to adjust strategies to match client goals. AI-powered portfolio management can boost returns by about 20%.
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Improved Transparency and Accountability
With technology, asset management becomes more open and trustworthy. Digital dashboards allow clients to check their investment performance at any time. This direct access to real-time data helps build confidence between managers and investors.
RegTech (new compliance tools) helps firms follow industry rules automatically. These systems instantly track compliance and generate reports.
RegTech companies cut compliance costs by 50%. If you want better relationships with clients and easier compliance, this is the book for you. With digital dashboards and RegTech tools, you can make your asset management more transparent and easier.
Conclusion
Technology is reshaping how we manage assets, making everything faster and more precise. The best firms leverage AI, data analytics, and automation to produce better client results. It’s time to stay ahead. Today, start exploring these tools. In this digital age, your business needs modern solutions to satisfy clients’ requests for change and continue growing.