Over half, 66 percent, of 100 buy-side executives ranked data gathering as the most time-consuming hurdle to client communications and reporting.
The SimCorp findings, which were commissioned by WBR Insights Report, focused on the state of client communications in Europe and North America, and it found that 50 percent of respondents still use systems that are over five years old
The report found that the vast majority of firms continue to overlook client communications as a key differentiator, despite increasing competition in what is fast becoming a shrinking market.
According to the findings, over 30 percent of firms spend 250 days a year or more on producing investment reports for clients.
Simcorp noted that the results strongly indicate the manual burden many firms operate under, and often with a detrimental effect to client experience.
This is despite a wealth of technology and solutions available in the market, that automate and customise reporting for buy-side firms, Simcorp revealed.
Meanwhile, 74 percent of firms use six or more systems for client communications and reporting and 34 percent of firms dedicate at least 25 to 75 employees to client communications and reporting.
Additionally, 68 percent of firms now use online portals alongside traditional methods to deliver client communications and reporting.
Kiran Bharucha, management consultant, wealth and asset management at KPMG said: “Data has always been a differentiator in this business, it’s now paramount in terms of its importance to competing on a great client experience.”
Stuart Keeler, managing director, SimCorp Coric, commented: “In the past, client communications and reporting was seen as a cost centre, but the investor-manager relationship has changed significantly over the last decade.”
“Firms that wish to thrive now not only need to re-think their operational approach to client communications, but also recognise its value to the bottom line. Those that move first will be best placed to compete effectively, tailoring client propositions and automating burdensome reporting efforts, to generate cost savings and revenue.”
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