Fund administration is a critical function for any investment management company, and the software used to support this function is equally important. However, many fund administrators are still using outdated software that is no longer fit for purpose. In this blog post, we'll explore why current fund administration software is outdated and what fund administrators should be looking for in modern and innovative alternatives.
One of the main reasons why current fund administration software is outdated is that it is not designed to handle the complex and ever-changing regulatory environment. The financial industry is subject to constant changes in regulations, and outdated software is often not able to keep up with the latest requirements. This can lead to compliance issues and put the fund administrator at risk.
Another issue with current fund administration software is that it is often inflexible and not able to adapt to the unique needs of each fund. This can lead to inefficiencies and a lack of automation, which can make the administration process more time-consuming and costly.
Fund administrators should be looking for modern and innovative alternatives that address these issues. These alternatives should be designed to handle the complex regulatory environment and be flexible enough to adapt to the unique needs of each fund. They should also have automation capabilities to reduce manual processes, and be secure and compliant to protect sensitive data.
One such alternative is cloud-based fund administration software. Cloud-based solutions are designed to be flexible, scalable and secure, and are often updated automatically to keep up with the latest regulations. They also provide real-time reporting and analytics, which can help fund administrators make more informed decisions.
Another alternative is the use of AI-based software. They are able to automate the manual tasks, providing accurate and efficient data analysis, and reducing the human error.
Modern and innovative alternatives like cloud-based software and AI-based software can provide fund administrators with the tools they need to navigate the complex regulatory environment and adapt to the unique needs of each fund. They can also help reduce costs, improve efficiency and minimise risk. If your fund administration software is outdated, it's time to explore these alternatives and see how they can help you better serve your clients.