After taking part in the recent FundsTech Forum 2025, my immediate observation was about data. Over the past few years, the majority of technology conferences I’ve attended have focused on the need in the funds industry to prepare data for its effective usage. This was a recognition that many – possibly most – firms are sat on a vast array of data that is not curated well enough to be used immediately.
Throughout FundsTech, this continuing need was acknowledged. Yet it was also felt that progress had brought the situation under control, either due to the spread of tools that can make use of unstructured data, or due to significant investment in structuring data effectively.
However, there were several other notable recurring themes at FundsTech Forum 2025.
Desire to simplify the technology stack
80% of the funds industry’s technology needs are felt to be available today via established providers. Managers hope/believe that this technology will “just work” for them. However, the new, hopefully beneficial technologies emerging are not yet established, and the cost of adoption is considered disproportionately high. This isn’t just in terms of Proof of Concept and training, but also KYC/procurement/vendor due diligence costs, which can accumulate, and are an often unseen aspect of a multi-vendor technology stack.
“There is concern that projects can take years to complete, meaning firms would find themselves using outdated technology once again following completion of any large-scale project.”
Speed of technological advancement
Many people commented about the reticence to start any new technology projects. There is concern that projects can take years to complete, meaning firms would find themselves using outdated technology once again following the completion of any large-scale project. The main feeling was that technology improvements could no longer be based on putting a patch on a problem. Entire workflow processes need to change and only then can there be more speedy progress towards efficient technological usage and deployment.
It was also interesting to hear about a stark contrast in systems set up between younger asset managers and the long-established brands. Not only are the more recent entrants to asset management not hampered by legacy systems but their ability to adopt a “fail fast” mentality seemed in stark contrast to their more mature rivals.
Legacy systems
Many people felt that legacy systems still have a role to play and that they can be the most resilient part of a technology set-up given that these systems are often so well tested. However, the open-architecture nature of newer systems often makes the interface with older systems hard and sometimes limits their value.
Legacy systems also typically lead to forcing users into a rigid operational process that doesn’t suit the needs of many users today. Many commented, myself included, that future systems are not yet fit for purpose and still need significant improvement before a flexible one-stop technology stack is available for any asset class.
Impact of generational change
Generational change in technological understanding was also heavily referenced at FundsTech. Generational change relates not only to a younger client base that wants a purely digital engagement and more speed, but also to the fact that the workforce is changing. Sometimes younger people may find the technology in their workplace is less advanced than they use at home. There is a lot of frustration building as younger employees know solutions are available to replace manual processes which are not being deployed.
Increasing use of AI
Of course, AI was often touched on during the Forum, recognising the increasing application of AI over and above the more simplistic automation use cases. For the first time I heard a repeated comment that AI was now in place for some managers in all aspects of the investment process, overseen by humans, but utilised throughout.
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At one point a discussion was held about the desirability of a full AI (quant style) product, recognising that this would need to be cheap to be attractive. However, in reality, the cost to make such a product is unlikely to be commercially viable today.
Tokenisation
Having first gained traction in Singapore, more tokenised funds are entering the European market. International regulators are becoming more comfortable with the concept and the technology required is becoming mainstream as adoption increases. We may now see some technological developments being made to support investment processes, for example with regards dealing. The last two panels of the day looked at where the industry might be in 2030 and the broad conclusion was that there is a building momentum towards technology but there nevertheless remains a degree of caution about the topic. This is despite the fact that the majority of tech solutions that people need is readily available to them.
