|[January 09, 2013]
Fund Administration Technology Comes of Age in 2013, Predicts Confluence
PITTSBURGH --(Business Wire)--
In 2013, global demands for instant access to customized data in an
evolving asset management industry will further drive fund
administrators' growing need for cloud technologies and automated
processes, according to Confluence, the industry's leading provider of
data management solutions. As asset managers face an increasing number
of data-driven demands from regulators and investors, they will be
compelled to adopt new technologies with enhanced speed and frequency in
2013. The result: a "coming-of-age" period for fund administrators.
"This year marks a pivotal time for the adoption of technology in
the fund administration back office," said Skip Smith, EVP of Product
Development for Confluence. "Fund administration technology is coming of
age and will provide forward-looking fund administrators with a
strategic competitive edge."
Confluence sees 2013 as pivotal year for fund administrators in
Industry to Close Technology Gap on Expense Processing for Greater
Efficiency, Accuracy and Control
Fund boards and investors today require a microscopic view of fund
expenses. With an intensified focus on expense analysis and cost
control, fund administrators are challenged to provide increased
transparency, precision, and efficiency, and fund boards are challenged
to control expenses. These demands have rendered standard approaches to
expense processing that rely on spreadsheets and manual processes
Confluence predicts that 2013 will be a pivotal year in which fund
administrators abandon outdated, error-prone manual processes and
spreadsheets in favor of automated expense processing systems. In the
new automated age of expense processing, fund administrators will be
able to increase the levels of transparency, accuracy and responsiveness
while significantly improving efficiency of their operations. While most
large fund companies can manage expenses for 35-50 funds per person,
expense automation has the potential to allow one person to process
expenses for p to 100 funds.
Explosion in Financial Data and Demands for Data Access Presents Huge
Challenge for Industry.
In recent years, the financial industry overall has needed to find
ways to deal with the explosion of data in business and the world at
large, as well as the requests often placed on that data. The amount of
data available in the world is growing at a rate of about 50 percent a
year, or more than doubling every two years, estimates IDC (News - Alert), a technology
research firm. With so much growth in data, fund administrators
specifically now find themselves overwhelmed not only by the incoming
flow of information, but also the increasing demands that regulators and
investors are placing on those streams. In response, the industry will
need to abandon antiquated spreadsheet methods and adopt innovative
Cloud Technology Pushes Fund Administrators into the Future.
As asset management has evolved with an increasing focus on the
investor and transparency, round-the-clock data availability and control
are clearly key differentiators for remaining competitive. With the
proliferation and improvement of cloud technologies - especially through
the Software as a Service (SaaS (News - Alert)) delivery model - fund administrators
now have the tools they need to work smarter for their clients, and in
turn, drive business objectives.
SaaS is a widely recognized core component of the future IT
landscape and market share in enterprise applications and adoption is
expected to grow significantly in the coming years. The overall SaaS
market will increase three-fold to $92.8 billion by 2016, according to a
2011 study by independent research firm Forrester Research (News - Alert).
For fund administrators, the availability of cloud-based
applications will allow for greater global scalability, accessibility
and flexibility in their outsourcing options. With cloud-based
applications, the job of deploying an application and keeping it running
from day to day-managing upgrades, monitoring performance, ensuring high
availability, and so forth. By relieving fund
administrators of the IT burden they can focus on what matters most -
"In past years, we've seen fund administration technology grow and
change due to economic issues and regulatory needs. While these remain
concerns for fund administrators, it's clear that this year is really
about how fund administrators can use technology to better prepare
manage their data and prepare for the future," said Smith.
Founded in 1991, Confluence is a global leader in fund
administration automation. Confluence helps investment management
companies gain unprecedented control by automating every step of the
fund administration process-including the collection, creation,
confirmation, and delivery of investment product data. Results are lower
costs, reduced risk, decreased reporting turnaround times, and the
scalability to automate more processes without additional resources.
Confluence solutions are used by 40 percent of the leading global
investment managers, and more than 60 percent of U.S. mutual funds. The
Unity® platform from Confluence addresses a wide range of problems from
performance measurement to customized reporting for a full array of
domestic and international managed investment products, including mutual
funds, funds of funds, collective funds, separate accounts, and variable
products, as well as hedge funds and other alternative investments.
Headquartered in Pittsburgh, PA, Confluence serves the international
fund industry with key locations in San Francisco, CA (News - Alert), London and
Luxembourg. For more information, visit www.confluence.com.
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