Ahead of the Association of the Luxembourg Fund Industry’s , Delano spoke with Lize Griffiths, partner and real estate leader at Deloitte in Luxembourg and Alfi board member. Griffiths will moderate the “Asset digitalisation: the impact and opportunities for both asset managers and servicers” panel, Thursday 19 October at 2:45pm.
Christina Clements: Can you provide an overview of the topic that you will be addressing at the Alfi London conference?
Lize Griffiths: This year, the Alfi conference features a tech panel that delves into asset digitalisation, its impact and opportunities for asset services as well as asset managers. While examining asset digitalisation within the investment management industry, the discussion primarily revolves around the utilisation of digital technology and data-driven approaches. Its scope extends beyond merely overseeing investment portfolios, rather, it also involves enhancing operational efficiency and optimisation. Interestingly, these are the outcomes anticipated by the stakeholders in relation to asset digitalisation. Expectations from industry players include increased transparency, personalised investment services, cost reduction and a competitive edge through technology.
What is the impact of asset digitalisation today, especially in the context of the upcoming Alfi event?
To demonstrate the impact and significance of asset digitalisation, it’s imperative to examine the concrete examples that the three speakers will present. Based on that, we will cover notable industry trends such as data management solutions by focusing on tangible asset digitalisation examples in the realm of asset data solutions. We will also explore the utilisation of technologies such as blockchain, tokenisation, AI and DLT [distributed ledger technology].
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Another trend I would like to explore with the speakers will be payment technology and central bank digital currency.
Our objective is not only to share successful stories of these trends but also to share valuable lessons learnt from the implementation of these trends.
How is artificial intelligence being utilised in asset management, and what benefits can it bring to the industry?
The best way to demonstrate the quick evolution of technology would be, to go through recent examples impacting the fund industry such as generative artificial intelligence, or gen AI, which can create original content from inputs, predict outputs and construct scenarios. Previously this was limited to human expertise.
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Some examples of its use in the asset management industry are:
Portfolio management: Gen AI can analyse diverse data sets, including news articles and social media trends, to make market predictions. It can offer portfolio suggestions, tailored to specific investor needs or strategies. An interesting example of gen AI is robo-advisors, a digital investment platform utilising computer algorithms. These algorithms generate investment advice based on survey questions and investment objectives, making it very efficient for portfolio management.
Risk management: Gen AI’s capability to recognise complex patterns can be used to simulate various market scenarios, enabling the anticipation of future threats. It also has the capacity to simulate and learn from patterns of fraudulent behaviour, making it very efficient to identify suspicious transactions.
Customer engagement: Gen AI can manage a larger volume of customer interactions, providing personalised support for routine transactions and investment queries. This ultimately leads to higher customer satisfaction.
As a matter of fact, Deloitte has entered into an alliance with Nvidia, a world leader in AI computing, to unlock the potential and assist other organisations to access accelerated computing power. We believe that this can be used to create advanced learning models and ultimately provide a competitive advantage.
Are there any specific goals you hope to achieve through your participation in the event?
My primary goal is to foster a sense of community by bringing together professionals from across the United Kingdom to collaborate closely with our Luxembourg counterparts. We hope that the conference will serve as a platform where community, debate and actionable outcomes will intersect and drive progress.