10 April 2012

Linedata survey finds technology is key back office competitive differentiator

Linedata, the global solutions provider dedicated to the investment management and credit industries, today released the results of a recent fund manager and fund administrator survey. The survey respondents spanned 10 countries and ranged in size from US$5 billion to over US$40 billion.

Technology is Key Differentiator

With the challenges and issues they are facing, firms will look to technology to be a key competitive differentiator. To that end, over 87% of firms surveyed cited it was a priority to improve upon or replace their existing software.

Gavin Little-Gill, Linedata Global Head of Asset Management Products, observed, “With 56 significant product and servicing agreements signed in our back office solutions group in 2011, Linedata can attest to this trend. Linedata offers comprehensive back-office solutions, which embody powerful combinations of compliance monitoring, reporting and portfolio management capabilities along with core fund accounting and investor servicing functionality.”

Other key findings include the addition of clients and increasing asset type coverage as leading causes of client revenue growth; while regulation, cost cutting and adapting operational workflows to increasing client demands are the key challenges faced by over 87% of the firms surveyed.

Regulation Leads the Way

The survey shows that 64% of both manager and administrator respondents consider regulations to be a key issue they are facing in their business. With the requirement to comply with many new or amended regulations across regions, there will be much greater need to further automate compliance policy procedures, compliance reporting and breach management capabilities. Administrators will further focus on increasing client demands and fee pressures; while managers are more concerned by cutting costs.

On the findings, Gavin Little-Gill commented, “With the brisk pace of change and tight competition today, clear strategic thinking is more important than ever. To succeed in a globalized market, firms need to develop the correct strategy to optimize and secure their growth. Linedata specializes in partnering with our clients to ensure they have the technology and services to support their business requirements not just for today, but in the future.”

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