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Technology Drives Effectiveness and Retention - Markets Media

MiFID II to drive automation

New research from Backstop Solutions shows that technology is a key driver of effectiveness and retention because it automates manual tasks and frees up professionals to spend time on the most valuable activities.

Survey results show that while only 55% of BD/IR professionals are satisfied or very satisfied with their technology solution, nearly 80% say, “There must be a better way to do this. ” I think on a daily basis.

Investor relations (IR) and business development (BD) professionals from Backstop Solutions’ 2022 Alternative Investment Manager Productivity Study found that alternative asset manager professionals worked more efficiently overall and used technology more effectively. I discovered that it can be used for

Marilyn You

Maryling Yu, Chief Marketing Officer at Backstop Solutions, said:

In addition, current market conditions appear to be impacting funding capacity, as the study reveals.

Yu said Alternative Asset Managers (Alt AM) may delay decisions to procure and implement new technology if the fund manager has not yet implemented the technology solution.

“Alt AM is looking for ways to thrive during downturns by allowing us to scale up or down as needed,” she told Traders Magazine.

Yu stressed that non-core, non-value added (time-wasting) tasks are good candidates for automation.

“For Alt AM, they are experiencing pain in the area of ​​manual entry and reconciliation of money management data, which is multiplied by the number of funds they have,” she said.

Research shows that this is an opportunity for automation to step in, freeing up about five hours a week.

Yu added that another area is identifying the allocator that actually allocates to asset classes.

She said this requires more than automation, it also requires integrating and presenting accurate data into the prospecting process.

“According to our research, this could potentially free up an additional seven hours a week for BD/IR professionals,” she said.

Asset managers often have a dual role. Finding new allocators and building existing relationships. This is not without its challenges.

“If you do both, you need software that effectively tracks data and information on both sides of the equation. said one asset manager.

“Another stressor includes the important task for asset managers of finding investors who are actually allocating. They are like needles in the haystack,” the manager said. I will,” said Yu.

“A lot of my outreach looking for allocators involves the usual work of data gathering and front-end lifting. Up mail, said the fund manager.

Yu said disciplined use of CRM could solve this problem for asset managers. This allows teams to collaborate through a portal and make calls and meetings with allocators available to everyone.

Technology has transformed the world of work, automating manual tasks and allowing professionals to spend their time on their most valuable responsibilities.

Research shows CRM is the technology solution managers are most satisfied with (and least satisfied with).

“Most people make their CRM too complicated to the point that it’s hard to use, hard to use, and time consuming,” said one asset manager.

Yu added that discipline and data hygiene are key when maintaining a CRM, and data feeds are an important part of streamlining it.

She added that it is very difficult for institutional investors to use a generic CRM for their specific needs. This means reusing the CRM to represent the strategies you have, the funds you have under each strategy, the vehicles you have under each fund, and your shares. Possible classes under each vehicle.

A future area of ​​research, she said, is investigating the differences between those who rate CRM highly and those who don’t. “Our hypothesis is that the more disciplined an organization’s approach to data hygiene and record integrity is, the more valuable her CRM will be as a solution,” she said.

In terms of the impact of technology satisfaction on BD/IR professionals, this may affect workplace well-being, which is relevant in the context of ‘great resignation’,” says Yu. commented Mr.

Yu said that client service will become even more important when performance is currently difficult, and this means that the BD/IR team can provide client service at a very high level in order to differentiate and maintain quotas. I added that it means I need to. “Having the right technology in place therefore does a double-duty of not only increasing the ability to get the job done (retaining capital), but also increasing the workplace satisfaction of the BD/IR team (retaining talent). has an impact,” she said.

Commissioned by Backstop, the study was conducted May 29-June 29, 2022 among 103 BD/IR professionals from alternative asset management firms.