Client Onboarding and Entity Data Processing: Calculating the Value to the Buy-Side
Investment managers, along with their clients and other counterparties, experience multiple and often redundant touch points and handoffs of entity data throughout their respective organizations. Manual and inefficient methods are used to acquire, maintain, and distribute data and documents to regulators, compliance staff, and counterparties causing costly delays in trading. Such a disjointed client data environment creates pockets of direct, avoidable costs from duplicative work, data inaccuracies and inconsistencies, and productivity losses across the organization. A parallel cascade of “hidden costs” results from those events, including the negative effects on the business from poor client satisfaction, concerns over data security and privacy. These challenges are all compounded by shrinking resources for operations and IT.
This TABB Group report examines how investment managers are dealing with client data management issues and estimates the cost implications for investment firms from sub-optimal approaches to data management. With the growing acceptance of industry utilities and cloud technology, the value to the buy-side of a centralized client data and document management utility has never been greater. Processes surrounding client onboarding and entity data and document management are ready to be transformed.