VIDEO | Total cost savings, process quality, and control are among the factors that must be weighed into the equation when an in- or outsourcing decision is made. At PostTrade 360° Copenhagen on Wednesday, Michael Bernth Nielsen, COO of Capital Four Management, shared his views on the trade-offs. 

“We are still a relatively small asset manager, so understanding scale is important,” Michael Bernth Nielsen.

A combined score across price, quality and flexibility is one of the tools that Michael Bernth Nielsen puts to use when selecting services from external providers. Then, the monitoring of the delivery must be structured to support the insight into what ought to be insourced or further outsourced.

PostTrade 360 Nordic 2024

On one hand, asset managers need to depend increasingly on technology, he points out –because we can’t afford the people and there are not many enough of them anyway”. But the trade-off is always there against the need to adapt to the investors’ needs. 

“It can be very expensive to be cheap,” he says, noting that this is something the industry has come to recognise. 

For Michael Bernth Nielsen, the investors’ experience is the undisputed top priority. 

“We have to insource it if we can’t get the quality,” he says. “And we have to be quick so we don’t disappoint the investor.” 

On stage, Michael was interviewed by Mouna Capitanio, Director, Operations & Accounting Business Services, SimCorp EMEA.

• News around PostTrade 360° Copenhagen 2022, on 20–21 September, is gathered here
• The conference info site, with detailed agenda, is here.
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