The decentralized operating environment facing managers during this crisis has further underscored the importance of executing or accelerating a digital transformation of their core operating processes. As managers shift from the triage of remote working challenges to establishing operational continuity, many are quickly deploying the “Asset Manager’s Playbook,” to stay ahead of the next phase in the COVID-19 crisis.
We are now seeing more than ever before a distinct segregation between funds that deployed a digital transformation plan prior to 2020 and those that had not. The key component of success now truly boils down to a fund’s ability to leverage new technologies and “digital-first” providers to transition to an operating model that bolsters operational continuity, reduces costs and enables faster insight generation.
Finding opportunities to act upon becomes equally important in the current all-remote model in order to manage essential daily tasks, especially in today’s environment. Outsourcing offers a potential solution, but many firms are still using traditional “people-driven” paradigms with reports that are emailed/serviced via portals and a lack of transparency into the underlying processing/system. The more complicated the problem or process, the more headcount it requires.
To begin a transformation, funds do not have to take firm-wide action. Managers can start small by identifying areas ripe for automation and outsourcing to begin their “digital-first” foundation, such as:
Tapping into these outsourced services enables a fund to mitigate overall operational risk, reduce costs and, more importantly, provide an innovative and scalable foundation for a new “digital-first” operating model. COVID-19 will only continue the trend toward harnessing the managed services offerings of specialized vendors to boost operational continuity.
As funds continue to navigate this environment, they can use the opportunity to improve their functions by outsourcing specific processes to “digital-first” managed services providers. IVP Managed Services uses proven IVP tech platforms (used today by 140+ managers managing more than $3.1 trillion in assets across all asset classes globally) to achieve economies of scale and provide 100% transparency of outsourced processes. Our cross-functional support team, consisting of business and operations analysts, provides dedicated reconciliation and middle-office operations services. This integrated service offering, which is equipped with well-defined SLAs and KPIs, helps to control operational risk, reduces costs and provides long-term scalability, flexibility and transparency by leveraging an activity-based pricing approach vs. a traditional FTE approach.