Asset managers push automation as legacy systems drag

August 18, 2025

A growing number of asset management leaders are turning to automation and digitisation as they battle operational inefficiencies across their businesses, according to new research from FE fundinfo.

The company’s 2025 Asset Management Report found that 64% of leaders have already invested in digital solutions aimed at strengthening performance and resilience.

The study highlighted how outdated systems are weighing heavily on operations. Almost half of respondents (46%) said dependence on legacy systems is their biggest barrier to modernising fund data and reporting. These entrenched processes are creating structural weaknesses across firms, making day-to-day management more complex.

Data fragmentation was also found to be a major strain on managers. More than half of UK asset managers (56%) reported issues linked to inconsistent data flows within product distribution. A further 43% pointed to the challenges posed by the frequency and volume of data updates.

The report showed that regulatory reporting processes are particularly vulnerable. A lack of connectivity across data systems is leading to wasted internal resources, with 37% of respondents naming regulatory document production as the most resource-intensive area.

Adapting to market shifts and regulatory demands remains a major drain. FE fundinfo’s survey found that 61% of leaders said their current set-up still requires heavy investment of time and resources to respond to market or regulatory changes.

FE fundinfo CEO Liam Healy said, “Asset managers clearly see the value of data. The problem is that too many firms are still being hamstrung by inconsistent data flows, duplicated systems and legacy technology that isn’t fit for purpose. This disconnected approach complicates processes across the fund management life cycle while consuming internal resources in a way that is unsustainable for growth.

“Successful modernisation requires breaking down these barriers and building agile, scalable systems that can respond to the demand of today’s industry. The goal should be for every asset manager to have the insights they need, when they need them.

“A data-driven approach is the foundation for confident decision-making, stronger compliance and long-term growth. Automation, data and digital tools present an enormous potential for change in the asset management community, and capturing the right insights will grant the most opportunity.”