In the evolving technology landscape, coupled with regulatory concerns and investor demands, CTOs at investment management firms must be prepared for a host of complex technology challenges in today’s world. Here are some of the top challenges CTOs in the investment management industry are facing today:
1.) Data Security, Privacy and Governance
One of the top challenges, if not THE top challenge, for CTOs is cybersecurity. Troublesome threats include AI-driven cyber attacks, ransomware and malware attacks, phishing schemes and internal threats, among others. Cybersecurity programs require attention, expertise and consistent evaluation to ensure you have a robust security posture, and developing the proper protections, plans and programs is time consuming and challenging.
2.) Multi-cloud Computing Challenges
While cloud computing has grown in popularity and is widely accepted by investment management firms, CTOs were more comfortable with using the private cloud due to its inherent security. Now, with recent advancements in security, more firms are incorporating the public cloud into their methodology. Challenges lie in every step, from planning and deciphering which cloud model best fits firms' needs, to implementing and securing the cloud infrastructure, managing vendors, and educating employees and other internal and external stakeholders.
3.) Compliance Regulations and Audits
All businesses in the financial space need to be especially cognizant of the regulatory bodies and compliance requirements specific to their industry. Compliance audits ensure that the firm is adhering to the regulatory guidelines and drive all technology related decisions. Failure to maintain compliance can result in hefty fines or legal action. This responsibility often falls on the CTO, and it is no easy job to maintain compliance across an investment firm.
4.) Strategic Investment in Technology and Budgetary Concerns
In general, IT budgets are growing among investment management firms, and with the progressive and evolving technology landscape, new tools, technologies and services appear and create difficult choices regarding budget spend. CTOs must evaluate which tools are useful, valuable, and trustworthy for the organization. For some CTOs, getting management buy-in for new technologies is a challenge of its own. On the other hand, for some CTOs, convincing the management team that a technology or tool isn't the right fit for the firm is the challenge.
5.) Finding Talent
According to our 2019 Global Investment Management IT Survey, respondents indicated that lack of in-house cybersecurity talent was a top 5 concern for 47% of UK businesses and 22% of businesses in the US. The talent pipeline depends on potential hires and their skill sets, and the shortage of talent in general, specifically in security, cloud computing, data analytics and business analytics.
6.) Scalability and Integration of Applications and Tools
Integration of new applications and tools take time, and scaling integration with an increasing number of applications and technologies further aids to the complexity of the integration. CTOs are responsible for ensuring that applications don't conflict with each other while maintaining sufficient security measures so that the firm is protected.
7.) User Experience: Investors and Employees
At the end of the day, if new tools and technologies aren't accessible to end users, whether that's investors or employees, getting buy-in will be a challenge. CTOs need to be cognizant of the end user's experience, ensuring tools are able to enhance collaboration and performance and boost productivity and efficiency, instead of hinder them.
With these complex technology challenges firms are facing, Eze Castle Integration is here to help CTOs thrive amidst change. Having a trusted partner to assist with everything from technology evaluation to implementation to cloud and security needs can alleviate some of the challenges presented.