Independent 2024 Total Economic Impact Study Revealed a 134% ROI with SimCorp One platform

Highlights

• A new Total Economic Impact study commissioned by SimCorp revealed that a composite SimCorp One client achieved a 134 percent return on investment (ROI) within the first three years of investment. 
  
• The study is based on interviews with SimCorp clients who are actively using the SimCorp platform.
• Participants in the study reported improved operational efficiency, reduced IT maintenance costs, and increased incremental profits due to faster time-to-market for new product launches after the investment. 
   

New York, Copenhagen, October 29, 2024 - SimCorp, a leading global financial technology company, today released the results of a Total Economic Impact™ (TEI) study conducted by Forrester Consulting on behalf of SimCorp.  

The TEI study is designed to understand the potential financial impact of investing in SimCorp One, an end-to-end investment platform that supports the entire investment lifecycle for public and private markets. 

The study found that a composite SimCorp One client achieved a 134 percent ROI on the initial investment over a three-year period and a net present value of USD 18.76 million.  

The Forrester study is based on interviews with five SimCorp clients worldwide. Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization. This organization is a global investment management organization with USD 150 billion in assets under management (AuM). It has 100 business users on the platform, of which 60 are back- and middle-office-based, and 40 are in the front office.

During the three-year period, the composite organization reduced the total cost of ownership (i.e. the total people and technology costs) by investing in SimCorp One, compared to the prior state or doing nothing. The composite organization experienced robust growth, alongside a cost reduction of 22.3 percent in year 3, excluding all projects costs including implementation costs.

According to the study, the composite SimCorp One client also experienced the below benefits in addition to achieving a 134 percent ROI 

• Improved operational efficiencies of 25 percent to 45 percent, worth USD 11.5 million. The composite organization avoided increasing the number of operational FTEs because the business growth is backed by an integrated platform that’s anchored around a unified data layer. 
• Avoidance of legacy tools license and maintenance costs, saving up to USD 7.9 million. By implementing SimCorp One, the composite organization replaced three legacy systems, which delivered cost savings.  
• Business users including back-, middle-, and front-office staff saved a combined 135,200 hours over three years, worth USD 7.2 million. Having prompt access to the latest functionalities and capabilities as well as any data improved the composite’s system performance and streamlined reporting results in increased productivity of business users. 
• Increased incremental profits of more than USD 6.0 million from faster time to market. The composite organization reduced new market entry, portfolio, and regional launch time by 50 days in Year 2 and by up to 60 days in Year 3 because it was easier and faster to manage one integrated system versus multiple disparate tools and processes. 

Prior to using SimCorp, the clients Forrester interviewed faced significant challenges in reconciling data from multiple systems and processes across their front, middle, and back-office teams. Consequently, front-office staff lacked real-time visibility into their investment portfolios, hindering informed decision-making. 

Portfolio manager from UK-based investment management firm (advisory, broking and solutions) with USD 136 billion in AuM said in an interview for the study: “We didn’t have real confidence in the data circulating between internal teams in the organization, so people were spending a lot of time sourcing data from scratch — probably multiple times — getting someone else to check it and then someone else to double-check it.” 

An interviewed Head of Operations at Switzerland-based investment management firm (wealth manager) with USD 310 billion in AuM said in the study: “If we want to add geographic reach, asset classes, or new investments or connect to a new broker or a new interface, we can do it smoothly and easily.” 

The investment accounting supervisor at a US pension fund management with USD 45 billion in AuM said in the interview for the study: “Reconciliation used to be done on the 15th day of the month. Now it’s [done on the] fifth day, and it covers all 24 funds — from small to large — over the entire AuM. The big benefit is that portfolio managers are able to make better decisions with live data. So, [they’re able to be] much more nimble in investment decisions.” 

To access the full TEI study, or to learn more about SimCorp One, visit here. 

About SimCorp  

SimCorp is a provider of industry-leading integrated investment management solutions for the global buy side. 

Founded in 1971, with more than 3,000 employees across five continents, SimCorp is a truly global technology leader that empowers more than half of the world’s top 100 financial companies through its integrated platform, services, and partner ecosystem. 

SimCorp is a subsidiary of Deutsche Börse Group. As of 2024, SimCorp includes Axioma, the leading provider of risk and management and portfolio optimization solutions for the global buy side. 
 

Media Contact  
Søren Rathlou Top 
Global PR Manager at SimCorp 
+45 31 15 87 06 
Srat@simcorp.com