[ U P D AT E ]
Buy-side
COOs expand
roles to reach
transformation
goals, finds
BNP Paribas
said Alain Pochet, head of client delivery,
BNP Paribas Securities Services.
“Crucially, they are not relying on new
technology alone, but are also upskilling
their workforce, a combination which could
prove key to the successful transformation
of financial institutions.”
The study shows the relationship
between custodians and COOs is extending
beyond the back-office to encompass all
parts of the business.
In order to accomplish this, fund
managers need to come to terms with
the reality, when hiring a new COO, their
responsibilities will go well beyond their
traditional functions of the past. The
survey showed 35% of asset managers
COOs were most likely to come from
technology or IT backgrounds, as opposed
to finance or accounting.
For the smaller and medium-sized
alternative investment managers, what
is becoming more commonplace is the
COO and chief financial officer (CFO) roles
merging into one. In some cases, the chief
technology officer (CTO), the chief risk
officer (CRO) or the chief compliance officer
(CCO) could also become bundled into this.
What this means for custodians is they
now face heightened demands to deliver
a range of new products and technology
solutions that allow greater integration of
the COO with the rest of the firm, including
the front-office.
New research shows COO's influence
stretching beyond the back-office
as over half of respondents in Asia
Pacific rank transformation as their
top priority.
C
hief operating officers (COOs) of
buy-side firms are increasingly
seeing their roles expand to cover new
responsibilities, with a particular focus on
digital transformation and new products,
according to a study from BNP Paribas
Securities Services.
The research showed that while risk
management remains a key part of the
COO role, respondents said that driving
growth opportunities through new
products and services and delivering
transformational projects have
become essential.
This trend was particularly evident
in the Asia-Pacific region, where over
half of COOs ranked transformation
as their top priority, verses 26% in
North America.
Nearly two-thirds of asset manager
COO respondents also cited increased
competition in the market as a key
challenge, while 59% also said they
saw themselves spending more time on
delivering change projects in the future.
The report also showed 61% of asset
manager COOs said they were looking for
closer collaboration with IT and technology
departments.
“Our survey shows that COOs are
adapting quickly to meet these challenges
and are embracing their growing remit,”
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