CEO mid-year update: Navigating uncertainty and enhancing client engagement

As we reach the midpoint of 2024, the global economic landscape is marked by significant uncertainty. Political events across the globe, fluctuating interest rates, and unpredictable inflation are creating a challenging environment for investment managers. How do these factors impact our industry? Which strategies can maintain client engagement and enhance our services 

The importance of communication to improve client experience   

The uncertainty dominating the macroeconomic climate is undeniable. With several key elections taking place worldwide, political instability can be  a significant concern. Interest rates remain relatively high, and inflation trends are unpredictable. These factors can make it difficult for asset managers to deliver consistent performance, leading many to focus on cost-cutting measures which directly conflicts with client expectations and the overall digital experience that they see. However, this approach has its limits and can negatively impact client experience if not managed carefully.  

In today’s competitive market, where performance may not always meet expectations, effective communication and a robust client experience are crucial. We’re invested in the client journey, from initial awareness to ongoing engagement. This involves understanding how clients perceive and interact with digital platforms, sales materials, and documentation. 

Gone are the days when static quarterly reports suffice. Clients now demand more agile and relevant updates, encompassing financial performance, governance, sustainability and environmental impacts. This comprehensive approach to client engagement is essential in differentiating during turbulent times. 

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Ensuring investor confidence with technological advancements, security and regulatory considerations 

Kurtosys has made significant strides in developing a world-class product that facilitates seamless communication between investment managers and their investors. Leveraging various digital methods, our platform ensures robust security frameworks, such as SOC 2. Our commitment to incorporating artificial intelligence (AI) enhances these capabilities, positioning us ahead of competitors. 

The regulatory landscape, particularly in the UK, requires us to consider vulnerable clients under consumer duty regulations. It’s crucial to provide alternatives and support to clients facing financial difficulties, ensuring they make informed decisions rather than impulsive ones. This approach not only maintains investor confidence but also prevents outflows during volatile periods. 

In conclusion, the key to navigating the current economic challenges lies in enhancing client engagement through strategic communication, technological innovation, and regulatory compliance. Our organisation remains committed to these principles, ensuring that we not only meet but exceed our clients’ expectations.  

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Looking ahead to 2024 and beyond 

As we move forward and look to the second half of the year, we will continue to refine our strategies and embrace new technologies to stay ahead of industry trends. Our focus remains on including more automation and AI functionality to improve client engagement and better serve the investors. Automation not only enhances efficiency but also ensures accuracy by minimising errors. By helping our clients benefit from new ways of harnessing data and insights, such as integrating with cloud-based solutions like Snowflake and Databricks, we streamline processes and ultimately enable investment managers deliver superior results. Our mission to providing exceptional client experiences and maintaining high standards of accuracy and security will guide us through the second half of 2024 and the coming years.  

Thank you for your continued trust and partnership