$600B Asset Owner Requests Front-to-Back Strategic Assessment of Their Investment Technology

The Challenge

Our client is a major asset owner, with a policy of diversification. Having underutilised its core investment platforms for years, the organisation was considering whether to pursue an entirely new operating model or optimise the current state through tactical point solutions.

Due to limited regulatory requirements, the client had few formal process and data controls. Their licensed systems were up to industry standard, but the firm struggled with ad hoc queries, presenting histories and “carve-outs,” as well as establishing rules within the operating environment that would create consistency and reliability in their data, and any resulting calculations.  

Our Client’s Priorities

• Improving utilisation of technology, working with either current or new systems.
• Establishing segregation of duties between portfolio managers and traders, while generating value from trading
• Aligning operations with more tightly regulated firms.
• Increasing the accessibility of holdings, transactions, and other investment data for users. 

The Project:

With the overarching goal to enhance the investment process, align operations with more regulated firms, and generate value from trading activities, Citisoft was engaged to improve the firm’s utilisation of technology. The core focus was to evaluate underutilised platforms and address conflicting views on the preferred operating platform direction—be it to build out current platforms, implement tactical fixes, or pursue a new model.  

The project aimed to deliver a system rationalisation document within a tight five-week timeframe. The system rationalisation document outlined proposed fixes, future operating model options, and a roadmap for integrating artificial intelligence (AI), robotic process automation (RPA), and data lakes into the investment process.  

Project scope included:

• Interviewing team leaders to ascertain views on departmental and corporate IT strategy. 
• Facilitating regular meetings with the CEO and stakeholders to seek alignment, as internal agreement was paramount to the success of the project.  
• Conducting detailed benchmarking of ten peers, including three comparable firms operating under similar mandates.  
• Delivering design options for future operating model and a supporting roadmap for the client’s future aspirations for artificial intelligence, robotic process automation, and data lakes. 

Key deliverables

• System rationalisation document 
• Map of proposed tactical fixes 
• Peer benchmarking analysis 
• Scope for future operating model 
• Supporting roadmap to integrate AI, RPA, and data lakes into the investment process. 

The Result

The Citisoft team provided advisory support to the client’s steering committee and senior management as ensuring executive buy-in at each stage was crucial to the success of this project.  

Citisoft recommended an integrated operating model based on a new investment platform, supported by a comprehensive options analysis, and receiving acceptance from the client. Citisoft was able to supplement the recommendation with a detailed review of other options, describing them in terms of the degree of change to be achieved, vendor approaches to implementation, and the management of future system development. The content on the different types of operating models was augmented with advisory notes on enterprise risk, the set-up of a segregated dealing desk, and data management considerations.

By leveraging Citisoft’s expertise, the client made an informed decision in charting their future systems strategy.