Data accuracy a major burden for investment managers when reporting

5 December 2014

Vermilion Software, the leading supplier of client reporting and communications software, reveals today in a new white paper that accurate and reliable data presents a major challenge for client reporting.

The white paper, entitled ‘Catalysts for Change in Client Reporting’, was based on a survey of over 100 senior financial technology and data decision makers in investment management, conducted on behalf of Vermilion Software.

A third (38%) of investment managers cited data accuracy as their biggest challenge for client reporting, followed closely by mobile reporting solutions (37%) and regulation (35%). Sales and marketing demands were also cause for concern for a surprisingly high number of respondents, with a quarter (25%) unable to keep pace with requirements.

The WatersTechnology survey also highlighted an increasing client demand for better quality data. Over half (54%) of respondents reported an increase in requests from their clients for more accurate and timely data. This problem is compounded by difficulties in aggregating and consolidating data from a growing number of input streams.

Two thirds (67%) of investment managers expect client reporting to increase in complexity over the next three years. Reasons quoted include increasing client

sophistication, more complex instruments and regulation. The need for more detailed quantitative analytics, real-time data and interactive reports is on the rise.

Investment management companies already recognise the need to invest in and maintain their systems, with companies seeking to realise cost efficiencies, replace

ageing technology and adapt their systems to cater for changing regulatory requirements. Three quarters (74%) of companies have already made a significant investment in client reporting technology or minor upgrades to their systems over the last two years and more than half (61%) plan on further investment in client reporting technology over the next three years.

“The survey findings indicate that investment managers will need to focus on driving data quality improvements, better quality reporting and mobility solutions in order

to keep pace with evolving client requirements,” said Simon Cornwell, Global Sales and Marketing Director at Vermilion Software. “Investment managers may look to adapt their processes and technology to be in a better position to respond to increasing pressure for more timely and efficient processes, regulatory change and the increased need for service excellence.” 

 Respondents were drawn from top tier global investment management companies (58%), smaller private wealth managers (9%), brokerage and hedge funds (12%) and financial data companies (11%).

 Download the report

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