As asset managers move into 2026, the role of the COO and operations leadership has never been more pivotal. Cost pressure, regulatory complexity, product proliferation, and client expectations are converging — all while legacy operating models strain under the weight of scale and complexity.
The next phase of asset management operations is not about incremental improvement. It is about re-architecting how work gets done, how risk is managed, and how value is delivered.
Below are the 9 key trends COOs and operations teams should be planning for now.
1. Operations as a Strategic Control Tower
In 2026, leading COOs are moving beyond managing “the back office” toward building enterprise control towers.
This means:
- End-to-end visibility across front-to-back workflows
- Real-time insight into exceptions, breaks, and risk exposures
- Data-driven decision-making instead of retrospective reporting
Operations teams are increasingly responsible for providing management with actionable operational intelligence, not just status updates.
What to do now: Invest in integrated dashboards that consolidate data from trading, accounting, risk, and servicing platforms into a single operational view.
2. From Automation to Industrialised Operations
Most firms have automated pieces of their operation. In 2026, the focus shifts to industrialisation.
Key characteristics:
- Standardised processes across products and geographies
- Automation embedded into workflows, not bolted on
- Exception-based processing as the default
AI-enabled tools are increasingly trusted to:
- Predict settlement and reconciliation issues
- Prioritise operational risk events
- Reduce manual touchpoints across the trade lifecycle
COO takeaway: The goal is not fewer people — it’s fewer errors, faster resolution, and more scalable growth.
3. Operating Model Simplification and Stack Rationalisation
Years of growth, acquisitions, and regulatory responses have left many firms with bloated technology stacks and fragmented processes.
In 2026, COOs are aggressively:
- Rationalising overlapping systems
- Reducing vendor sprawl
- Aligning technology decisions to target operating models
This trend is tightly linked to cost discipline and operational resilience.
Key question for operations leaders:
Does our technology stack reflect how we want to operate — or how we ended up here?
4. Data Ownership Moves to Operations
Data has traditionally sat with IT or investment teams. That is changing.
In 2026:
- Operations teams increasingly own data quality, lineage, and governance
- Clean, consistent data is viewed as a prerequisite for automation and AI
- Regulatory and client reporting expectations demand traceability and transparency
COOs are recognising that data is an operational asset, not just a technology problem.
Priority action: Establish clear data ownership within operations and formalise data standards across critical processes.
5. Real-Time Processing Becomes the New Standard
Settlement cycles continue to compress, and clients expect near-instant visibility.
Operations teams are adapting by:
- Shifting from batch to event-driven processing
- Implementing real-time reconciliation and cash management
- Proactively managing exceptions rather than reacting to them
This real-time mindset improves control while reducing operational fire drills.
Bottom line: Speed and control are no longer trade-offs — firms must deliver both.
6. Smarter Outsourcing and Partner Ecosystems
Outsourcing is no longer just about cost reduction.
In 2026, COOs are:
- Re-evaluating which activities are truly differentiating
- Leveraging strategic partners for scale, resilience, and innovation
- Holding providers accountable through performance-driven SLAs
The most successful models treat third parties as extensions of the operating model, not black boxes.
7. Compliance Embedded into Operations
Regulatory requirements continue to expand — but manual compliance is no longer sustainable.
Leading firms are:
- Embedding controls directly into workflows
- Automating surveillance, reporting, and policy enforcement
- Reducing reliance on post-event reviews
For COOs, this reduces operational risk while lowering the cost of compliance.
8. The Operations Talent Reset
Automation is fundamentally reshaping operations roles.
In 2026:
- Transaction-heavy roles continue to decline
- Demand rises for staff with process, data, and technology fluency
- Operations teams become problem-solvers and change agents
COOs are focusing on:
- Reskilling and redeploying talent
- Creating clearer career paths within operations
- Retaining institutional knowledge while modernising skills
People remain critical — but the skills mix is changing fast.
9. Operational Resilience and Cyber Readiness
Operational resilience has moved from a regulatory checkbox to a board-level concern.
Key focus areas include:
- Cyber incident response embedded into operating procedures
- Clear ownership of critical services and dependencies
- Tested recovery and failover capabilities
In 2026, resilience is measured by how quickly operations can recover, not just whether plans exist.
The COO as Architect of the Future State
The defining challenge for COOs in 2026 is not technology adoption — it is operating model leadership.
Success will depend on the ability to:
- Simplify complexity
- Embed intelligence into workflows
- Align people, process, and technology around clear outcomes
Asset management operations are no longer a cost centre to be optimised, but a strategic capability that enables growth, protects the firm, and differentiates the client experience. While the pace of change is rapid, the opportunity ahead is significant. With the right operating model, data foundation, and execution focus, firms can turn operational transformation into lasting advantage and Davies is well positioned to partner with you on that journey.
