Back-office automation and managing increased regulatory reporting continue to top the priority list of asset managers, according to a new survey report released by Confluence.
Nearly 61% the asset management industry professionals who participated in the survey said that automating back-office processes was an important goal over the next two years.
Further, 47% of respondents cited managing increased regulatory reporting requirements simultaneously as their most important goal over the next two years, while 44% cited centralising fund data.
The study found that 91% of professionals were concerned about manual processes and spreadsheets affecting the ability to control errors, while 81% expressed concern about their ability to control costs.
However, majority of respondents said that at least a portion of the process was being managed manually.
The study also revealed the industry’s increasing focus on centralising fund data, with 71% of the respondents citing the significance of consolidating fund data into a common database, an increase from 50% in 2008.
According to 31% of respondents, data consolidation helped meet increased regulatory reporting demands, 42% said that it helped reduce reporting errors, and 43% said that it improved data accuracy and consistency.
Sixty percent of respondents said that their firm had started centralising fund data into one database, up from 50% in 2008.
Also, 48% of respondents said that consolidating third-party solutions would benefit their firm, while 57% said that it would help to streamline regulatory and investor reporting processes.
However, 74% of respondents reported that their firm still relies on multiple, disparate back-office systems.
Confluence executive vice president of global business development Todd Moyer said: “Relying on multiple single-point solutions is especially problematic when it comes to regulatory reporting.
“It is inefficient, introduces the risk of error and makes process automation more challenging. As regulatory reporting pressures increase, data consolidation and process automation will become more important. It is imperative that the industry collectively begins to take more significant steps in realizing their goal of automation now.”