Linedata, a provider of global solutions for professionals in asset management, insurance and credit, announced the results of its Annual Investment Management Survey. Although the study underlined unsurprisingly, regulatory pressures and their impact, there is real interest in moving towards hosting solutions, SaaS as well as the need, in 2012, for front-office and risk management solutions. Economic uncertainty still prevails for next year although the majority of those interviewed do anticipate a return to growth.

Linedata interviewed 159 professionals from September to the beginning of November during the Linedata Exchange which took place in Europe, the United States and Asia. Gavin Little-Gill, Head of Asset Management Product Strategy, comments on the main results :

"The financial industry is being subjected to even more regulations. The enquiry led by Linedata reflects this change as well as apprehension on the part of professionals who are trying to gauge the impact of these regulations on their businesses. As a result of this change one is seeing real changes in terms of IT investments. In 2010 a large majority of businesses were hoping to improve their existing systems, whereas this year, they are turning towards optimisation of risk management. The industry wants an understanding of the entire trade life cycle, together with better insight into risk and increased transparency.

The establishment of front and middle office solutions is indispensable to management and the monitoring of operational risk, as this solution allows one to follow activities and exposure to risk throughout the day. Linedata proposes reliable and recognised solutions which allow management professionals to better respond to their client’s needs whilst maintaining optimal compliance. The survey results are aligned with our current development policies : automation, accountability, control and transparency all of which are found in our latest innovations"

Current and future challenges

The survey showed that 25% of respondents consider adaptation to the new regulations will be their major challenge in 2012, followed by the volatility of the markets and their fragmentation. Therefore, for the majority of professionals, 2012 will be characterised by the need to conform to new regulations. Two thirds of people interviewed expected growth in 2012, however they remain divided on where this growth would be.

IT Priorities

Trading and front office applications seem to be the priority of 27% of respondents; risk management and compliance were a priority for 33% of those interviewed. It is important to note that there is a growing demand for offers from SaaS and "cloud computing". 36% of those interviewed use these types of services for their businesses and 42% are considering using them either in the short or medium term. "The investment industry is turning more and more towards these SasS platforms as they offer security, flexibility and optimal management of costs. Gavin Little-Gill said : "Linedata offers a complete package in this area which has already been accepted by more than 105 financial businesses around the world"