Survey reveals concern over manual operations
28 October 2014 Pittsburgh
Image: Shutterstock
There is growing concern over manual processing in back-office operations, according to Confluence’s 2014 Asset Management Industry Trends survey.
Respondents were concerned that manual processes could affect their ability to control back-office errors, with 94 percent listing this as a concern, compared to 85 percent in the 2010 survey.
Adopting automated systems was the most frequently listed back-office goal for the third year running, with 61 percent citing this as their most important task to achieve over the next two years.
Todd Moyer, executive vice president of global business development at Confluence, said: "The data revealed in this survey supports what we've been seeing. There is a growing sense of urgency among back-office professionals to streamline operations and leverage automation to reduce the risk that manual processes pose to the asset manager."
Participants expressed concerns that manual processing could affect their ability to meet deadlines, with 83 percent considering this a problem, compared to 72 percent in 2010.
They also raised the issue of reporting errors of inaccuracies, with 19 percent saying this was their top back-office concern.
About 78 percent said they use third-party solutions to support their back-office operations, and 76 percent believed that consolidating these solutions would lead to increased efficiency.
Similarly, 55 percent thought that consolidating solutions could lead to streamlined reporting under the new Alternative Investment Fund Managers Directive reporting requirements.
The increase in regulatory and investment reporting requirements was the second most common concern cited in the survey, with 48 percent listing this as a top goal.
Although 87 percent of participants emphasised the importance of centralising fund data to a common database, 38 percent revealed that their firms have no centralising solution in place.
Moyer said fragmented back-office technology is restricting the industry’s ability to automate processes, and therefore adding to the risks associated with manual processing.
"Fragmented back-office technology and fund data is at the root of the industry's growing concern over regulatory reporting and manual process risk," said Moyer.
"Asset managers need an industrial strength platform that enables technology and data consolidation while providing the ability to leverage automation to support their work process. It is our goal to help clients address these concerns by providing solutions that can aggregate back-office data and automate the operational process using a single platform."
The survey was conducted between 4 and 30 September, and featured 96 online interviews with asset managers and third-party administrators.
Respondents were concerned that manual processes could affect their ability to control back-office errors, with 94 percent listing this as a concern, compared to 85 percent in the 2010 survey.
Adopting automated systems was the most frequently listed back-office goal for the third year running, with 61 percent citing this as their most important task to achieve over the next two years.
Todd Moyer, executive vice president of global business development at Confluence, said: "The data revealed in this survey supports what we've been seeing. There is a growing sense of urgency among back-office professionals to streamline operations and leverage automation to reduce the risk that manual processes pose to the asset manager."
Participants expressed concerns that manual processing could affect their ability to meet deadlines, with 83 percent considering this a problem, compared to 72 percent in 2010.
They also raised the issue of reporting errors of inaccuracies, with 19 percent saying this was their top back-office concern.
About 78 percent said they use third-party solutions to support their back-office operations, and 76 percent believed that consolidating these solutions would lead to increased efficiency.
Similarly, 55 percent thought that consolidating solutions could lead to streamlined reporting under the new Alternative Investment Fund Managers Directive reporting requirements.
The increase in regulatory and investment reporting requirements was the second most common concern cited in the survey, with 48 percent listing this as a top goal.
Although 87 percent of participants emphasised the importance of centralising fund data to a common database, 38 percent revealed that their firms have no centralising solution in place.
Moyer said fragmented back-office technology is restricting the industry’s ability to automate processes, and therefore adding to the risks associated with manual processing.
"Fragmented back-office technology and fund data is at the root of the industry's growing concern over regulatory reporting and manual process risk," said Moyer.
"Asset managers need an industrial strength platform that enables technology and data consolidation while providing the ability to leverage automation to support their work process. It is our goal to help clients address these concerns by providing solutions that can aggregate back-office data and automate the operational process using a single platform."
The survey was conducted between 4 and 30 September, and featured 96 online interviews with asset managers and third-party administrators.
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