Despite the advances in digital technology, more than two-thirds of fund management firms and asset servicers worldwide still use fax.
This is one of the more eye-catching findings from a global automation survey conducted by Funds Europe.
The research, supported by funds network Calastone, surveyed close to 600 funds professionals across 12 countries and four regions.
While automation and straight-through processing have been a focus for operations teams for decades, the survey shows there is much more work to be done to remove costly manual processes.
This is especially true for more client-facing processes such as performance reporting and onboarding. In fact, client service is the main driver for automation, as cited by 73% of respondents.
But if asset managers want to create a more digital user experience for investors, then greater automation will be necessary.
“As the industry becomes more sophisticated about how it engages with investors and distributors, none of the flashy front-end tools will be available without an automated back-end,” said Edward Glyn, head of global markets, Calastone
Even in mature markets such as Luxembourg, there are still plenty of opportunities to improve automation rates.
The survey also looked at regional differences in automation rates. The results suggest that there may be a perception issue around what defines a good level of automation. For example, many of the Asian-based markets profess to have higher automation rates than the likes of Luxembourg, despite also using the fax in greater numbers.
To examine these findings and more, the report can be accessed here.
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