In 2014, cloud-based portfolio management systems drew great exposure – possibly the greatest since their conception – after more companies in the finance industry realized the transformative benefits of moving to software as a service (SaaS) from on-premises software.
In addition to the benefit of improved security—putting an end to the rising tide of data breaches at high profile institutions, for example—some of the advantages of moving to a cloud-based portfolio management system include the following:
Real-time monitoring and evaluation of data. The fundamental role of cloud-based portfolio management system is to provide clients with comprehensive and consistent reporting and analytical tools accessible through the web 24/7. With an advanced data management platform, asset managers can promptly manage and mitigate risks, as well as transform details into meaningful insights for improved decision-making. They can do this from wherever they are, boosting individual and company productivity.
Lower operational costs. Cloud-computing solutions are much easier to deploy than their on-site counterparts. Indeed, instead of devoting resources and hiring employees for the task of developing and managing the solutions, they can simply pay for the service created by companies that specialize in this area. Because of this, businesses can expect minimal project start-up costs, and also be able to focus on their core competencies. Also, since these kinds of services are basically pay as you go, there would be no need for capital expenditure (Cap-Ex) at all, according to SalesForce. Businesses can then save their funds for Cap-Ex for Operational Expenses.
Higher return on investment. This technology lets administrators and authorized third parties easily keep their findings synched well by compiling all the files in one central location, thereby allowing them to conduct revenue-generating actions instantly. A survey by Frost & Sullivan supports this positive result by saying that companies which invested in collaboration technology benefited from a good 400% return on investment (ROI).
Faster disaster recovery. In the event of disasters, business intelligence provider Aberdeen Group found out that businesses which moved to cloud were able to fix issues in an average of 2.1 hours, as compared to the traditional 8 hours for premise-based solutions.
These benefits make it imperative for companies engaged in asset management to consider investing in a cloud-based portfolio management systems. Some of these solutions feature dashboards for capital statements, financial statements, capital calls and distributions, tax reports and other investor-specific documents in one application, streamlining the process and improving overall efficiency.
