Fund and asset managers are currently outsourcing operational processes to third parties, such as fund administrators and tech companies, to chase cost efficiency and scalability.
As recently ensured by the Financial Stability Board (FSB), the international body that monitors and makes recommendations about the global financial system, oversight and outsourcing remain one of the highest priorities on asset manager agendas. FSB also released a consultation paper that addresses our modern-day financial risks and the complexity of service supply chains.
The consultation paper indicates the widespread concern about the possibility of systemic risk resulting from concentration in the provision of some outsourced and third-party services to financial institutions. These risks could keep on increasing as the number of financial institutions that acquire critical services from a given third party increases.
When there are no appropriate mitigants in place, a major disruption at one of these third parties could destabilize the whole system with potentially adverse consequences for financial stability and/or the safety and soundness of multiple financial institutions.
Meantime, regulators are keeping their focus on funds and asset management outsourcing processes. As the stakes continue to rise, regulators are becoming more uneasy about system stability and resiliency.
All of those challenges packed together into one big pile also creates extra workload for global managers, who’re now obligated to increase their oversight and control over their 3rd party service providers, even when their operational resources are hitting the critical level due to pressure created by the pandemic and ever-increasing fees.
So how to move forward from here, with more knowledge and readiness for challenges ahead? How can we automate and optimize operational processes by outsourcing them while keeping our businesses safe while keeping the global financial system running?
Depowise is the investment oversight solution that you’re looking for
Central data warehouse that stores all your business-critical data safely, in the cloud or on-premises. Standardizing the heart and brain of your business makes you independent from other partners’ systems.
Depowise offers you the central data hub that centralizes and standardizes all your business-critical data. Our data technology will help you seamlessly gather the required information from your different counterparties, validate and standardize the data.
If the data is corrupt or the counterparty fails to provide it within the required SLA, Depowise will notify you about it. All this increases your business continuity and puts you back in control.
You can manage all of your day-to-day activities directly through Depowise.
In addition to that, the shadow NAV function of Depowise enables you to calculate Your Fund NAV independently from Your administrator. Our reconciliation engine brings out the discrepancies with Your administrator, avoiding losses of assets and reputation.
You can compare your yesterday’s market position and transactions with today’s numbers, compare money resting on your bank account by pairing it with money received through redemption & subscriptions. With Depowise, you’ll never need to worry about the safety of outsourcing because we offer transparency and security.
With Depowise, it’s effortless to independently calculate corporate actions (like dividends) and be sure that the administrator has not missed any of them. Reconciling fees and making sure they are precise has never been simpler.
Instead of five different Excel files, all you need is one centralized Depowise dashboard that logs all of your actions, together with all the necessary information for you to manage your investments and make sure you’re compliant with the laws. So when the audit comes and requests all information, you don’t need to worry because Depowise has it covered.
Interested in hearing more on how Depowise could benefit your company?
Let’s talk Depowise in greater detail. Contact our Founder and Solution Architect, Sven Peekmann, at firstname.lastname@example.org. We will arrange a demo and show you how the solution could benefit your bank or Fund Management Company