The pressure to modernize investment operations has never been greater. But too often, transformation gets reduced to upgrading technology without addressing the structural problems underneath. In partnership with Meradia, we hosted a webinar to examine what true modernization looks like: moving beyond duplication and reconciliation toward unified data, flexible platforms, and long-term resilience.
Top Takeaways
- Anchor transformation in a clear, long-term North Star.
- Eliminate duplication by consolidating accounting onto multi-book platforms.
- Retire file-based processes in favor of real-time data flows.
- Phase change to build resilience and maintain momentum.
- Prepare for convergence across institutional and wealth management.
- Evolve outsourcing relationships into co-sourcing partnerships.
- Build leadership commitment for long-term ROI.
As you’ll read, Meradia’s Chris Cassara and FundGuard’s Kirk Littleton unpacked why incremental fixes fall short, and outlined a more practical path toward meaningful transformation.
This recap highlights the major themes, but the full session is worth your time. Watch the webinar replay here.
Modernization too often gets reduced to a system swap. One platform is replaced with another, yet the underlying operating model remains unchanged. The result? Minimal progress, with the same manual workarounds, reconciliations, and fragility still in place. Real transformation means questioning those foundations: rethinking how investment accounting itself is structured, rather than layering new technology onto old processes.
Transformation is never a straight line. Regulations shift, markets evolve, and client expectations accelerate. Without a clearly defined North Star, which Meradia defines as a long-term vision that anchors every initiative, firms risk drifting into tactical projects that don’t add up to meaningful change. A North Star provides focus. It gives organizations the resilience to adapt course without losing direction, ensuring transformation is more than a collection of one-off fixes.
One of the industry’s most entrenched inefficiencies is duplication. The same portfolio often gets accounted for three times: in an IBOR, in an ABOR, and again by the custodian. Each layer brings its own feeds, teams, and reconciliations. Multi-book platforms eliminate that redundancy. They allow firms to create books tailored for different purposes—positions, NAVs, settlement—all curated from a single accounting source. The payoff is not just efficiency, but greater accuracy and resilience.
File-based processes are another drag on operations. Start-of-day files, wipe-and-load transfers, and overnight batch jobs introduce latency and complexity. Modern operating models demand continuous data, delivered in real time through APIs, message buses, and event-driven architectures. Retiring outdated practices is the foundation for building resilient, future-ready operations.
True transformation doesn’t mean ripping out everything at once. Moving from eight systems to two is a journey, not a single step. The most successful programs take a phased approach, reducing complexity in stages, delivering measurable wins, and building momentum along the way. Phasing creates the conditions for sustained change while keeping the organization aligned to its North Star.
The coming $85–100 trillion wealth transfer and the democratization of alternatives are reshaping the industry. Products are blurring the line between institutional and retail wealth investors. Supporting this convergence requires flexible platforms that can handle diverse assets and models, and leadership willing to plan on a five- to ten-year horizon.
Outsourcing is giving way to co-sourcing. Asset managers no longer accept whatever systems their providers choose to run. They want transparency, influence, and shared accountability. Service providers are being pushed to modernize their platforms, open up data access, and reduce reconciliation costs. This new model of co-sourcing makes transformation a shared responsibility across managers, servicers, and technology providers.
Transformation takes investment, and the return isn’t always immediate. But the true cost of running multiple platforms and reconciliation-heavy workflows is often underestimated. Cost transparency—knowing what it really takes to sustain outdated processes—helps make the case for change. Pairing those numbers with a long-term vision gives leaders the mandate to act.
Go deeper with Chris and Kirk into practical approaches for integration, mindset change, and reshaping the relationship between asset managers and service providers.
👉 Watch the replay here.
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