There is an urgent need for financial technology companies to come up with financial reporting softwareand other technology solutions that will enable asset management firms to demonstrate sustainable growth and operational credibility.Meeting or even exceeding thestandards of both institutional investors and regulatory boards will require a lot of innovation from technology solutions.
Strict Regulations
Regulatory boards are placing more and more compliance requirements for asset management firms.As these requirements pile up, firms recognize the need to integrate a reliable technology infrastructure into their everyday activities.
Financial reporting software and fund accounting software that is integrated in an efficient operational framework will allow firms to perform consistently, manage risks, and comply with the increasing regulatory demands for transparency, monitoring, and reporting.
Institutional investors
Investors are no longer just focused on high returns. They are also evaluating the integrity of a firm’s operations. Operational strength shows them that an asset management firmhas the capacity to control risks and perform consistently.
For the past few years, institutional investors continue to contribute majority of assets under management. To keep this momentum going,fund managers must build theirfirm’s operational credibility through software systems that can sustain growth and boost profitability.
Integration
The growing complexity of front, middle and back office operations of asset management firms require technology integration to be the next step for operational advancement. Portfolio management software should work seamlessly with fund accounting software and other office technology.
Integration is critical for achieving sustainable operations. Such integrated systems can simplify data management, one of the biggest challenges for the growing asset management industry.
Current asset management software remains very specialized. Financial technology providers need to come up with office solutions that integrate and simplify.
Accuracy
Technology integration systems will allow for smoother operations, but there is also a need for reporting software that could provide data transparency and highly accurate reporting. Such reporting systems must be able to store big chunks of data then transform them into workable information. To secure a reputation for compliance and integrity, firms must always be ready to show information to investors or regulatory boards.
The asset management industry will need integrated technology platforms that can handle big data and improve compliance through reporting and transparency. Future technology solutions must focus on systems integration and always include high-quality financial reporting software. If technology providerscan achieve integration, transparency, and accuracy, then they can secure a position asa must-have rather than just a nice-to-have for asset management companies.