All those involved in investment fund distribution and asset management find themselves at a crossroads. They must become more efficient, further reducing their costs, with investors expecting ever-increasing levels of service and access to data.
The digital transformation of the industry is underway in response, but actors may be daunted by the massive change ahead and can be hesitant. Agile frameworks enable them to take the first steps easily, as Cristina Gómez Asencio of FundsDLT explains.
Why Agile?
At the basic level, Agile is all about managing big or small projects or organisational change and delivering it in small but regular steps, rather than trying to deliver everything at once in some sort of big bang or changeover.
The main point or the difference between Agile and traditional waterfall projects is that in the past, you might have been working on a project for twelve months or so. You have very detailed requirements, timelines and milestones, but you do not really see anything market-ready until the very end. However, with Agile, we work in continuous iterations called "Sprints", so you can see the real product evolving while developing it. You learn as you go, so you can adjust or fine-tune whenever needed and not at the end.
Image Source: Atlassian (https://www.atlassian.com/agile/agile-at-scale/agile-iron-triangle)
Beyond this, for me, Agile is a mindset shift. This new way of working thrives in an environment of openness and empowerment. Agile is all about people, and that is why we should create a culture in which they can reach their full potential.
How does this apply to asset managers and fund distribution companies?
The systems in place at, for example, transfer agents and others, were developed more than 20 years ago. But in the era of digital distribution, through DLT and the use of big data analytics and so on, they will be increasingly unworkable. So, what we at FundsDLT are proposing is really quite revolutionary and replacing such systems and operational processes is a big ask.
In this situation, fund distribution companies need an approach like Agile to help them reduce the time to market with products that are usable now, and also to be able to react better in general, while not disrupting the complex systems already in place.
In what ways is the fund industry hesitant about introducing Agile frameworks?
Sometimes, people in larger companies may think that Agile is something for small, trendy FinTechs and cannot bring anything beneficial to their firm. This is definitely not true. In my previous position at a large bank, we introduced Agile frameworks successfully when developing their client-facing tools. Financial services firms, in general, suffer from rigidity, but Agile frameworks can bring new levels of flexibility and adaptability.
Another point is that some in the industry view Agile as chaotic in approach, having no plans, no roadmaps and no milestones, and this is not true. Agile allows us to make our clients and end users the drivers of our plans. After every iteration and every delivery, we use their feedback to adjust our plans to meet their expectations and growing needs.
It is about working in small batches or steps, delivering valuable increments faster and starting with a minimum viable product and adding to that in further iterations. Still, at each step, you have a workable product.
In the fund industry, it is the same thing. We can, for example, look at dividends and dividend payments; and this is a huge area. Getting this up to speed in one go is not practical, so we instead focus on one functional element at a time, ensuring it is workable and usable and then adapting and building on that moving forward.
What advice would you give to funds distribution companies and asset managers on effectively transitioning from traditional methods to an Agile framework?
As a start, I highly recommend that companies who are interested in implementing Agile frameworks treat it as an organizational change rather than a mere process implementation. The power of this new way of working reveals itself in the adoption of a new culture and new mindset.
In the fund industry, it is the same thing. We can, for example, look at dividends and dividend payments; and this is a huge area. Getting this up to speed in one go is not practical, so we instead focus on one functional element at a time ensuring it is workable and usable and then adapting and building on that moving forward.
What advice would you give to funds distribution companies and asset managers on effectively transitioning from traditional methods to an Agile framework?
As a start, I highly recommend that companies who are interested in implementing Agile frameworks treat it as an organisational change rather than a mere process implementation. The power of this new way of working reveals itself in the adoption of a new culture and new mindset.
Read the original article here.
