Almost 64% of asset management leaders are investing in automation or digitisation to address operational inefficiencies, according to financial data company FE fundinfo’s 2025 Asset Management Report.
Modernisation is now viewed as critical to operational resilience and performance, according to the report, with 46% citing reliance on legacy systems as the biggest barrier to improving fund data and reporting.
Siloed processes and inconsistent data flows are creating structural stress points across firms’ operations. About 56% of UK asset managers report challenges with data fragmentation in product distribution, while 43% struggle with the volume and frequency of data updates. Regulatory document production is resource-intensive, with 37% naming it as “this is the area of fund operations where industry leaders see the most internal resources being wasted.”
A lack of automation is draining asset managers’ competitive edge
The survey also showed that 61% of leaders still devote considerable resources to deal with regulatory or market-driven changes. According to the researchers, duplicated entry points and fragmented systems continue to slow accurate reporting and decision-making, limiting the industry’s ability to fully unlock the value of its data.
Liam Healy, CEO at FE fundinfo, commented: “Asset managers clearly see the value of data. The problem is that too many firms are still being hamstrung by inconsistent data flows, duplicated systems and legacy technology that isn’t fit for purpose. This disconnected approach complicates processes across the fund management life cycle while consuming internal resources in a way that is unsustainable for growth.
Successful modernisation requires breaking down these barriers and building agile, scalable systems that can respond to the demand of today’s industry. The goal should be for every asset manager to have the insights they need, when they need them.
A data-driven approach is the foundation for confident decision-making, stronger compliance and long-term growth. Automation, data and digital tools present an enormous potential for change in the asset management community, and capturing the right insights will grant the most opportunity.”
