The evolution of investment management – New technology for a digital age
Strong forces are reshaping Investment Management: customers want more digital engagement, more customisation and regulatory requirements are evolving towards greater transparency. This requires fresh new thinking which places technology at the front and centre of the corporate agenda. We spoke with Pierre Mendelsohn (pictured), founder and CEO of ALPIMA, about how firms can respond.
What are the main industry issues?
Investment management is facing a perfect storm fuelled by powerful forces. There is industry-wide digital acceleration and a growing demand for hyper-personalisation, combined with ESG considerations becoming core. The industry faces an unprecedented macro environment with low rates for longer, which challenges traditional asset allocation frameworks. Firms need to comply with evolving regulatory requirements, whilst adapting to new ways of working which have been accelerated by the pandemic.
Investment Managers must evolve from a product model to a service model to deliver Investment Management as a Service. Technology is the key to delivering the kind of service demanded by both customers and regulators. Simply put, customers and regulators are saying: become truly client-centric or die. This is a game changer, as many teams across the industry are still using 20 to 30-year old technology to go about their business and serve their customers.
ALPIMA was created to address this challenge.
What does ALPIMA do?
ALPIMA is the B2B SaaS platform for investment management and product design.
We are a fast-growing team of engineers, applied scientists and capital markets professionals with one mission: to harness the latest advances in data science and technology to help our clients adapt to the digital age.
Focused on the front office, we help our clients design investment solutions, construct portfolios, manage money, and serve their customers.
Our cloud-native, modular platform integrates with existing systems. It seamlessly connects multiple user types (research, structuring, PM, CIO, sales, advisors, and in some cases end-customers) on a single white-labelled platform.
This enables our clients to deliver true customisation at scale. It increases end-customer engagement and improves client service. Other benefits include a faster product cycle, more transparency and far greater efficiency.
What are the benefits?
Our clients are banks, investment managers, consultants and other financial firms. Using ALPIMA they design, build, test, optimise and implement personalised, solutions in seconds (vs days, weeks or months), transforming the way they engage with their customers from pre-sales to after-sales. We also allow Wealth Managers to manage client portfolios by linking them to Strategic and Tactical Asset Allocation (SAA and TAA) guidelines.
In summary, we enable the transition from a product model to a service model – focused on the end customer.
What is Object Oriented Investing™?
This is the core idea at the heart of ALPIMA. We treat each portfolio, or investment strategy, as a digital object with a clear code, or programme, that can be observed, modified, tested and optimised before it is implemented, very much like a digital version of an aircraft or a building before it is built.
Pierre Mendelsohn, CEO & Founder, ALPIMA
An engineer at heart, Pierre Mendelsohn founded ALPIMA in October 2014 to give professional and institutional investors a new service focused on rule-based investing and asset allocation. Previously Pierre worked for two decades with leading investment banks in New York, London and Hong Kong in global markets, focusing on quantitative investment strategies (QIS) and derivatives, in origination, structuring, sales, management and senior management roles. With his teams, Pierre has launched numerous investment products and systematic strategies which, in total, collected tens of billions of dollars from institutional and HNW clients globally.