The total automation rate of processed orders of cross-border funds increased to 90.4 percent in Q4 2018, from 88 percent in Q4 2017, according to a joint report by the European Fund and Asset Management Association (EFAMA) and SWIFT.
EFAMA and SWIFT found the use of ISO messaging standards rose from 55.5 percent to 58 percent during the same period, while the use of manual processes dropped from 12 percent to 9.6 percent.
The total automation rate of orders processed by Luxembourg transfer agents (TAs) reached 89 percent in Q4 2018, compared to 85.4 percent in Q4 2017.
The ISO automation rate increased from 69.8 percent in Q4 2017 to 72.2 percent in Q4 2018, while the use of manual orders dropped from 14.6 percent to 11 percent during the same period.
The total automation rate of orders processed by Irish TAs increased to 92.8 percent in Q4 2018, from 92.1 percent in Q4 2017.
The ISO automation rate increased from 32.5 percent to 34.7 percent, whereas the use of manual processes dropped from 7.9 percent to 7.2 percent during the same period.
Tanguy van de Werve, director general of EFAMA, said: “In today’s fee-pressure environment, fund managers are keen on improving the overall efficiency of their operations.”
“This trend is expected to continue. To the extent it facilitates the processing of cross-border fund orders, this increased automation is good news for the Single Market.”
Janice Chapman, manager of investment funds, standards at SWIFT, commented: “Yet again, we see growth in the volumes of automated cross-border order flows and funds transfer flows with more markets making plans for automation. This is, indeed, reinforcement of the industry trend to automate using the ISO 20022 standards”.
