There are plenty of portfolio managers and investors struggling within the same issue globally: asset consolidation. When the number of custodians, brokers and other asset depositories increase, it becomes more and more difficult to get the full picture of wealth and exposures. This concerns especially organisations such as independent financial advisors (IFAs) and multi family offices where the asset classes are distributed globally.
Traditionally this issue has been tackled by hiring an army of analysts to process data from distinct reports, emails and still even faxes. The consolidation process might be a long chain of different phases and at the end there are no guarantees that all the phases were completed without errors. The outcome might be perfect for roof level investment decisions but usually it lacks dynamics to change perspective on the go or exclude individual asset segments. Furthermore, manual consolidation takes time which is the most valuable asset when it comes to investment decisions.
The solution is to automate data inflows to a portfolio management system where the data can be processed and consolidated the desired way. Though, it is not always that easy, because the automation always requires two compatible ends to be interconnected. However, there are plenty of corporations that haven’t realised that their custodian or repository supports such export method meaning that those corporations are maintaining manual workflows, consuming time and money, when they would have all possibilities to streamline the whole flow. Either they are not aware, or they are too scared to change.
Even if the custodian is not compatible for such processes, at least it is a topic that should be discussed through with them. These counterparties are totally aware of the fact that the financial industry is moving towards more automated solutions and their market share is constantly shrinking if they are not allowing such services. Therefore, it’s only a matter of time if these players are willing to survive in the competition.
FA Platform is a perfect meeting point for your data flows for asset consolidation. Transactions can be consolidated with enriched security data from third party services on various levels, which allows you to get the reports automatically and from those perspectives that you need. With our solution, you can enter the new era of consistent, convenient and reasonable stakeholder reporting.