Market conditions are driving the sustained growth of the fund administration sector. Indeed, more and more business and investors are getting enticed by the benefits of using a third party administrator. At the same time, as the market grows, competition also becomes stiffer. Performance is key to gaining competitive advantage among peers. Of course, performance is affected by how effective the tools used by the administrators are.
Technology and analytics play a big role in setting the operational conditions. Through technology, administrators are given the tools to establish the most efficient and least costly operating model. With the growing clamor for transparency and reporting, the role of data analytics in fund administration becomes more pronounced. Investing in innovative technologies that help establish best practices and consolidate information has become an integral strategy to remain competitive.
However, this increased dependency on technology has also exposed the industry to cyber attacks. Cyber criminals have also become more and more sophisticated with their technologies and approach that cyber risk management can no longer be relegated to the periphery but must be included in the core competencies to ensure security. Funds are associated with a great deal of personal information that must be protected and kept private. An administrator’s policy on how this set of information is protected is a key factor for clients. Now it is fundamental to put in place a robust cyber risk assessment process that tries to strike a balance between accessibility and protection.
Data management and analytics also plays a big role in the struggle of administrators to institute reliable customer identification. Administrators must ensure that clients are protected from identity theft. It must also do its part in securing its own yard from perpetrators of fraud and money laundering. Regulatory requirements that compel administrators to perform the above obligations are enforced more strictly now that threats are more imminent.
In the United States, because of the regulatory requirements that have become stricter, transparency in fund administration has become ever more important. Existing standards and reporting methods are now put under pressure. The requirements compel administrators to gather data from different sources, aggregate it, and submit to the regulating body. To minimize its impact on resources, administrators turned to modern software solutions.
The environment continues to be challenging for fund administrators. Being able to adapt operational model to these changes and investing in technologies, as well as seeking the help of more experienced third party providers can help the firm become more agile.
Technology and analytics play a big role in setting the operational conditions. Through technology, administrators are given the tools to establish the most efficient and least costly operating model. With the growing clamor for transparency and reporting, the role of data analytics in fund administration becomes more pronounced. Investing in innovative technologies that help establish best practices and consolidate information has become an integral strategy to remain competitive.
However, this increased dependency on technology has also exposed the industry to cyber attacks. Cyber criminals have also become more and more sophisticated with their technologies and approach that cyber risk management can no longer be relegated to the periphery but must be included in the core competencies to ensure security. Funds are associated with a great deal of personal information that must be protected and kept private. An administrator’s policy on how this set of information is protected is a key factor for clients. Now it is fundamental to put in place a robust cyber risk assessment process that tries to strike a balance between accessibility and protection.
Data management and analytics also plays a big role in the struggle of administrators to institute reliable customer identification. Administrators must ensure that clients are protected from identity theft. It must also do its part in securing its own yard from perpetrators of fraud and money laundering. Regulatory requirements that compel administrators to perform the above obligations are enforced more strictly now that threats are more imminent.
In the United States, because of the regulatory requirements that have become stricter, transparency in fund administration has become ever more important. Existing standards and reporting methods are now put under pressure. The requirements compel administrators to gather data from different sources, aggregate it, and submit to the regulating body. To minimize its impact on resources, administrators turned to modern software solutions.
The environment continues to be challenging for fund administrators. Being able to adapt operational model to these changes and investing in technologies, as well as seeking the help of more experienced third party providers can help the firm become more agile.
