Key processes within traditional and alternative funds are still dependent on faxes and even postal correspondence, leading to an increase in operating costs because of delayed settlement and accrued interest, says Aite Group.
Aite, a research firm, says 70% of investment funds are investing in technology to improve their funds processing capabilities.
In a paper sponsored by Clearstream and entitled “Investment fund processing in an era of heightened risk awareness, increased regulatory demand, and financial austerity”, Aite Group says it is evident that order placement, confirmation, fund transfer, and reconciliation processes are particularly dominated by manual efforts.
Fifty-five per cent of those surveyed say they have to support an increasing volume of data without increasing full-time equivalent headcount. However, the remainder say they have seen a decrease.
The client side of businesses is one example where those surveyed say they face high degrees of cost pressures to improve timeliness of processes from batch-driven to intraday.
And 45% say that the way they currently process investment funds is not scalable.
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