Automation rates for fund processing increased in the first half of 2015, according to a report from European Fund and Asset Management Association (EFAMA) and SWIFT.
The report found that in the cross-border fund centres of Ireland and Luxembourg, automation and standardisation rates of orders received by transfer agents were 83.5 percent in Q2 2015, compared to 82.6 percent in Q4 2014.
The total volume of cross-border funds increased by 11 percent, reaching 17.5 million in the first half of 2015, compared to 15.8 million in the same period in 2014. Of these, 53.2 percent used ISO messaging standards, an increase of 3.8 percentage points.
In the same time period, use of manual process fell by 0.9 percentage points to 16.5 percent, and proprietary format use dropped by 2.9 percentage points to 30.3 percent.
In Luxembourg, the total automation rate of orders remained relatively stable, only falling very slightly from 81.3 percent in Q4 2014 to 81.2 percent in Q2 2015. However, use of ISO messaging increased from 57.9 percent at the end of 2014 to 63.3 percent in Q2 2015, and use of proprietary formats fell from 23.4 percent to 16.9 percent.
Irish transfer agents saw an increase in the automation rate of orders processed, hitting 88.3 percent in Q2 2015 compared to 85.6 percent in Q4 2014. The ISO automation rates in Ireland also increased from 29.5 percent to 30.7 percent.
According to SWIFT and EFAMA, the report highlights the advancement in automation and standardisation in cross-border funds, and the increasing use of ISO standards. It was based on a survey of 29 transfer agents in Ireland and Luxembourg, representing more than 80 percent of incoming third-party investment funds in both markets.
Peter De Proft, director general of EFAMA, said: “Compared to five years ago, overall, the share of orders processed using [ISO] standards has increased from 36 percent to 53 percent. This is a very positive development which brings greater efficiency funds processing and lower costs.”
Fabian Vandenreydt, global head of securities, Innotribe and the SWIFT Institute at SWIFT, added: “This report indicates the strong focus of the industry towards a more efficient and reliable process in the funds industry.”
“The decrease of [proprietary format] usage and manual processing versus adoption of ISO standards keeps on drawing the trends towards automation and cost reduction. SWIFT and EFAMA will pursue their efforts to lower the manual process as much as possible and support the industry where and when needed.”
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