Fund managers: Pay attention to these tech trends in 2023

Carlos Diaz

Integral to raising capital is the client experience, which includes leveraging digital tools to make this process smoother without sacrificing security and compliance. According to Deloitte’s 2023 outlook for investment managers, firms need to “continually reinvent their digital interactive experiences” in order to remain competitive with high and very high net worth clients. Integrating digital platforms is one way to break into newer geographical markets.

Fund managers should be aware of the value that a digital transformation can bring their firm. Investing in technical solutions can help teams save time and improve efficiencies, all of which delight clients.

How exactly will digital solutions impact fund managers in 2023?

Digital tools improve client communication

Digital tools for investor relations teams improve company culture. Employees satisfied with their firm's level of digital adoption are more than twice (42% vs. 18%) as likely to report that their overall business culture improved in 2022. Investor relations teams are often frustrated with how much manual work they spend on the subscription document process. The time that could be spent on more strategic initiatives like raising capital and forming new partnerships.

Digital platforms reduce security risks

Maintaining the highest levels of security when dealing with investor information has continued to be a priority as digital transformation projects are considered. Deloitte noted that 36% of fund managers are expecting an increase in spending on cybersecurity and data privacy.

The vulnerability for business compromise widens with manual processes and input. Moving to an investor management solution ensures information is appropriately captured and stored in a secure manner.

Tech streamlines the subscription process

A critical area with much room for client operation efficiency is the subscription process. A traditionally manual process requires sifting through complex subscription documents, often resulting in frustration and a delay in access to new capital.

An investor management platform gives investors an experience they won’t be frustrated with, and investor relations teams the lift they need to focus on more meaningful, long-term work.

  • For investors: A better experience to onboard into a fund by having clear and explained fields, visible document upload areas, and no need to repeat information.
  • For asset managers: Smart and dynamic workflows to reduce investor dropoff, get commitments/capital under management fast, reduction of risk from a data breach on internal systems, and quicker resolved revisions from investor information.

Leading asset managers are using platforms that convert subscription documents from countless PDF pages to a webform experience that offers minimal information inputs without duplicates. A best-in-class platform can also save money by consolidating service providers and reducing time spent needed to complete due diligence checks by using tools that complete KYC, accreditation checks, and manage W8/W9 forms.

Fund managers looking to emerge through tough markets and shine in thriving markets should assess their current processes and identify whether these processes can be improved with better digital tools.