And yet so many of these businesses pour huge sums of money into dealing with hardware, software, technical solution provision, on-premise systems and activities including disaster recovery, system enhancements, version control, fail over and business system continuity processes. Whether the investment firms realise it or not, many are undertaking these functions when, clearly, they shouldn’t.
However, specifically investment management organisations and advisors can easily avoid these excessive costs for the systems and the extra people required to support the processes when it comes to client and fund reporting.
A better solution would be for the investment firm to focus on managing money, managing risk and servicing clients, and leave the management and enhancement of the reporting system to a firm that specialises in the provision and support of the client and fund reporting system. Reporting as a Service is such a service, efficiently and cost effectively hosted in the cloud, accessed via a web browser, and providing world-class reporting to investment firms. The solution is cost effective, as there are many economies of scale and the team simply have one focus and objective – to run and enhance the reporting system.
In order to remain competitive within the industry, investment firms need to re-focus on their core competency and seek to engage with experts that provide the supporting services. These expert firms will specialise in what they do, and due to advances in how these services may be delivered and consumed, are likely to represent both an uplift in quality and a reduction in cost – which appears quite compelling to an investment firm looking to improve its client servicing and reduce its operational costs.