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What is Your Investment Technology Really Worth? | SS&C Eze

Written by Matt Kaell | Oct, 22 2024

Is the cost of your investment technology equal to the value it delivers? 

On the surface, it sounds like a straightforward question. And for some firms, it is. 

But for most users, the answer is more complex. As investment firms scrutinize their expenses, many still don’t know how much their investment technology is really costing or how much value that cost contributes to the firm. 

If your firm falls into the unsure category, read on. In this blog post, we’ll help you understand if the cost of your technology is living up to its value – and what to do if it isn’t. 

Ensuring Your Firm Gets the Most Out of Your Technology Investment  

Getting the most out of your technology starts by reflecting on how much value it currently brings to your operation. While that sounds complicated, it can be as simple as answering a single question. 

Which statement best reflects your firm’s relationship with the cost of its technology? 

My Investment Technology is Working for Me 

You have a good understanding of the value your investment management technology is bringing to your firm. You are aware of what you pay for the system – including hidden fees and hidden values – and have considered how well your technology empowers you to execute your ideas quickly and effectively. 

When you need help, you count on your technology vendor’s service and support; you’re confident they will be there when you need them, extending the value of your solutions and minimizing costly delays. 

I’m Satisfied with My Investment Technology, But There is Room for Improvement 

You feel good about the value you're getting from your investment technology, but you often wonder if there are ways to better leverage your system to achieve more value and lower costs 

In many cases, there are ways to further optimize the cost of your current solution. Work with your vendor to determine areas for improvement 

Some common – and impactful – areas for cost optimization include:  

  • Moving infrastructure to the cloud  
  • Optimizing existing processes  
  • Improving data management and analytics  

Once these changes have been made, ensure your firm’s cost optimization endures by cultivating a culture of continuous improvement. Regularly reexamine opportunities for improvement in expense management control and tracking processes, and most importantly, share your findings with your vendor. This open communication is key to maintaining a cost-effective and efficient investment technology system. 

My Firm Is Evolving, But My Technology Is Standing Still 

In recent years, markets have shifted, and investment firms have had to adjust, adopting new strategies, expanding asset classes, and seeking new ways to create efficiencies.  

But these changes have frustrated some firms who have found that their investment technology isn’t quite keeping up. Without technology to support these strategies, firms risk losing out on opportunities and revenue. 

It’s up to these firms to determine whether there’s room for improvement with their current system or if it’s time to move on.  

If you feel that making some optimizations will help get your technology and costs where you want them to be, start by implementing the strategies in the previous section. 

But if you feel your business priorities of today – and your future vision – can't be supported by your existing technology, it may be time to find a new solution, one that helps your firm create cost efficiencies in the short term while laying a strong technical foundation on which you can build. 

Read through our switching systems guide to find out if now is the time for you to consider a move. 

The Struggle is Real; It’s Time for a Change 

You’ve known – maybe for a long time – that your investment system is not delivering the value you need from your technology. 

But the process of finding a new vendor and switching over to a new process overwhelms you. So, instead of making the move, you stick with what you have, employing cumbersome workarounds and making do by any means necessary. 

Not only is this situation costing you money, but it could also damage your firm’s reputation.  

Switching systems can generate the cost savings your firm seeks and provide the functionality to maximize opportunities and protect the future of your firm.  

While it’s true that switching systems can seem intimidating, finding the right technology partner – one that will fully support each step of your move to a new system – makes the switch a smooth and (mostly) painless process. 

Take Control of Your Budget 

Technology represents a significant cost for a firm, so it’s imperative that you know exactly what return you are getting on your technology spend 

In this post, we’ve seen how assessing your current expenses, identifying opportunities to optimize costs, and, when the time is right, transitioning to more efficient investment technology can help your firm regain control of its technology spending and maximize the value of your technology investment.  

At SS&C, each day we help firms assess their technology spending, better utilize their existing systems, and find more cost-effective options.  

By working with one vendor for front-to-back technology applications, architecture, service, and a growing ecosystem of plug-and-play solutions, these firms save money on new features and tools with technology that adapts to their needs as they grow.    

Instead of hidden fees, SS&C offers hidden values, like substantial commitments to R&D—$110M annually across SS&C wealth and investment technology offerings—a client-first service model and ease of scalability.  

To dive deeper into expense-reducing ideas, download our new guide: Tame Your Technology Costs and Take Back Control of Your Budget, or speak to an expert to start switching to a solution with a lower TCO today.