Most firms are taking advantage of the countless state-of-the-art technologies
These are the technologies that enhance the course to carry out their profession. These days businesses are utilizing data, robotics, science, artificial intelligence and blockchain to improve their business.
As much as these revolutionary technologies are getting more acceptance, their association to hedge fund manager has not completely embraced these innovations. If I may ask, do fund managers have any need for these innovations?
Investors are always making more demands them by increasing the need for change and efficiency. Investors want enhanced operational efficiency.
These simple steps will improve your investor’s confidence in your firm. Here they are;
Spend more time deepening the client relationship
The truth is simply that efficiency will enhance the value, quality, and efficiency of your job. Technology, on the other hand, has a huge role to play.
Unfortunately, most hedge fund companies waste so much time dealing with the management of processes and don’t give much attention to their client’s management. It may not be easy changing the old order, but a commitment to efficiency.
Most fund managers currently face the confrontation or maybe even challenge of developing stronger and deeper client relationships
About 57 percent of all the hedge fund managers make use of technology to enhance their job. They have embraced technology because it has increased their efficiency and productivity. This is according to a report by EY 2017 Global Hedge Fund and Investor Survey.
According to the report, recent improvements in technology have provided more creative clarification for most fund managers. These current technological advances have also supported innovative operational models.
The survey also added that about 40 percent of more than 100 fund managers are willing to invest considerable amounts in automating the manual processes.
More than 27 percent are already investing in Artificial Intelligence and robotics. The aim to fortify the mid and back office.
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Robotic Process Automation
Recently, studies have shown that most companies are adopting Robotic Process Automation as part of their tool also supported Process Automation programs, routines, and monotonous business processes.
This process will help your company to function better and also automate processes that happen on a daily basis in your company.
The challenge most hedge fund managers face is and also how to find the proper technology to enhance their operations. One crucial question that comes to mind is, what are the best practices that are required to execute an effective plan?
How to put the Process Automation to a test?
After you have set up a process automation plan, it has to go through a series of testing to ascertain if there are lapses.
Use these procedures to start your operational automation;
1. It’s not necessarily about making a list, but you must know what all these processes are. You must find out the ones that are clearly repeated and those that will have a fruitful outcome
2. Write down your specific processes and of course what each precisely involves.
3. Monitor these processes and seek for improvement where need be. You can do so with the help of an expert.
4. Score or evaluate the processes. Formulate criteria to rank them. Some of the possible questions you ask are;
• Is the work or task repetitive?
• What is the level of creativity expected?
• How much expensive time will it save you?
• How accurate will the automation have to be?
This pattern will benefit you to understand the processes that will work effectively.
5. Have you considered the disadvantages of automating several processes? For instance, consider how a robot works. Is there any possibility that it can interpret something wrong? Is it possible that it may send a phishing email to the wrong address? Or is there a chance that it may access the Internet in a manner that is not accepted by your employee policies?
6. Take out time to find out software which may also carry out the processes you identified. Frankly, there are thousands of software that can carry out several processes. Some are free while with others you have to spend millions to acquire.
7. Apart from the steps listed above, you must consider before you choose a particular software platform and a third-party to assist with RPA project are as follows;
• Is the task routine or dynamic?
• Is there any possible oversight to be expected?
• Are the resources available for developing the processes internally?
• Is there anything the BOT shouldn’t do? In the same manner, are there any restrictions that ought to be considered?
The task of choosing the best automating process for you and of course your clients is quite a difficult one. However, the onus is on you to pick the best technology that will be suitable for you and your client.
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Procuring the help of a professional and very experienced IT partner that has so much knowledge in fund management will help in identifying the process that can enhance efficiency. That way you can execute your plans and benefit immensely from automation.
Outlining your business plan in a Digital Universe
The world is constantly moving to an era where virtually everything is digitalized or automated. It will be completely ironic if an important sector like hedge fund management is left out in this growing trend.
This simply means that hedge fund managers have to embrace this trend and think above determining which digital strategy to use.
You have to make a definition of your strategy because the world has become digitalized.
However, you can’t take away the fact that there will always be disruption here and there. The main thing is to make use of the best technology in a manner that will suit your operations and enhance efficiency.
The whole idea is to build the confidence of your investors and get more funding. It’s not particularly easy from the start but with professionals around you and commitment, your dream will materialize. The key remains perseverance, steadfastness, and diligence.
The end result is rewarding and gratifying. Some companies that were making waves in the early ’80s and ’90s failed to embrace technology and they are nowhere to be found today. Adopting technological reforms is the way to go.