StatPro continues the Revolution
StatPro believes software should be simple. Simple to implement, simple to operate and simple for their clients to achieve its business goals.
StatPro provides the analysis that helps the global financial markets tick. Sophisticated risk and performance analysis with the proper management of complex financial assets. The world has $160 trillion of assets under management and about $40 trillion of that goes through various StatPro systems.
StatPro has invested significantly in cloudbased technology. As asset managers feel the doublewhammy of lower fees and higher regulation, they need to adopt better technology and StatPro is central to their requirements.
The company’s flagship product StatPro Revolution, launched in 2011, has grown rapidly with over 300 clients across 39 countries using the platform. Revolution is a cloud native Software as a Service (SaaS) solution and was developed to exploit fully the advantages of the cloud computing delivery model. Importantly, it was designed to offer nearly limitless ondemand computing power along with modern data and application services. When companies build and operate applications in this way, they bring new ideas to market faster and respond sooner to customer demands.
StatPro employs 350 people across 10 countries, many of whom are professors in maths or physics – it even has an actual rocket scientist. StatPro believes it is the quality of the people it employs as much as the technology it produces that sets StatPro apart.
Combining this industry experience with the latest technology has resulted in StatPro Revolution, the first performance and risk analytics solution specifically designed for the cloud.
THE BUSINESS MODEL
StatPro’s business model is to rent out its software for long-term subscriptions providing it with high visibility on its revenues. Its annualised recurring revenue from present contracts is now £53m per annum as at 31 December 2017, up 35% from 31 December 2016 and 59% from 31 December 2015.
Its mission is to replace its legacy software with cloudbased solutions by end of 2020. StatPro Revolution’s annual recurring revenue now stands at £30m, up 100% from 2016.
StatPro continues to make enhancements to the Revolution platform, two major releases have already been made live to all clients this year. One area that has received particular attention is the extension of the selfservice capabilities the company provide to clients. StatPro Revolution helps clients create controlled self-service platforms where people can log-in and see portfolio analysis that is tailored to their role.
A key new feature of 2018, available to all clients, allows them to create personal configurable dashboards for anyone in their account. This means instead of creating dozens of static PDF reports every day, users can simply log-in to Revolution and see daily interactive analysis and distribute this to internal and external stakeholders. It also means a reduction of ad-hoc report requests that need to be managed and improves the client’s productivity, helping them enhance their service levels.
This fundamental shift from reporting to online self-service is like the transformation seen in online entertainment. Netflix has created the ultimate self-service platform for TV entertainment. They can see what content you’ve viewed, and they can recommend new content based on your viewing history. This approach can also work with the distribution of portfolio analytics.
Blockbuster Video is a good example of the old school method of static PDF reporting. The distribution is difficult to analyze. It’s difficult to know which reports are good, and which ones nobody even looks at. With an online self-service platform an asset manager has greater visibility of important portfolio analysis and therefore improved investment decision-making and risk control.
CHANGING TECHNOLOGY LANDSCAPES AND STAYING FLEXIBLE
Many of StatPro’s clients are undergoing technology transformations as asset managers look to become more efficient in light of margin pressure and increased regulation.
This was highlighted by the chief technology officer of Schroders, Stewart Carmichael in a recent interview, ‘It’s the need for change that drives innovation, and a combination of factors is driving change in asset management. We’re all aware of the margin pressures and burdens from regulation, which is creating a need for greater operating efficiency— technology innovation is the obvious answer to finding those efficiencies.’.
As old technology is replaced, the industry is looking to scalable and flexible solutions that allow them to consolidate and simplify their operations. StatPro is at the heart of this.
Many asset managers have old technology running their performance and risk analysis operations. Most have multiple systems doing similar tasks, each creating data in their own way, each needing separate databases and all the IT costs that go along with that.
Cloud-based platforms like StatPro Revolution allow clients to consolidate systems and reduce the complexity in their operations, allowing clients to manage their portfolios performance and risk analytics for all their investment types and portfolios in one place.
StatPro continues to work with clients to understand the challenges they face and continues to develop cloud-based solutions within the Revolution platform. Data management, scalable analytics and flexible interfaces are central components to these solutions and through our industry expertise and technology, we continue to lead the way in portfolio analytics. The Revolution will continue.