When it comes to revenue and expense management, the investment management industry is fragmented and in need of a major overhaul, according to a recent survey of EMEA investment managers by Bonaire Software Solutions.
Specifically, 67% of respondents cited data consistency across business units as one of their biggest challenges with expense management. According to the survey, accounting staff members within asset management shops are challenged with disconnected business units and paying vendor invoices without having the chance to validate fees. As a result, investment firms lack confidence in the accuracy of their payments. The poll revealed that over half (57%) confessed to a lack of confidence in paying out distributor rebates.
Additional survey results include:
- 42% stated that consolidating data from various systems when faced with revenue reporting was a major challenge.
- Reconciliation stood out as the biggest concern in distributor rebate invoicing (60%).
- The most difficult task to overcome within the participants’ organizations was consolidating holistic data from all business units for cross-business reporting (46%).
- “What’s clear is that the investment management industry needs to continue adopting the technology required to truly address reconciliation management processes,” stated Chris John, chief executive of Bonaire.
“Even though industry confidence is lacking given the fragmented internal environment at most firms, there is enthusiasm for change. Firms are beginning to recognize the flaws in their current reconciliation management systems and are in search of more efficient methods of calculation.”