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Rapidly changing investor expectations and industry requirements are motivating the industry to meet the impetus provided by advanced technologies.
Across most value chains and capital markets, technology has driven efficiency and cost reduction.
Alternative asset management firms are increasingly recognizing the changing dynamics, driven by digitalization, in terms of customer expectations and personalization. Customers are being acquired, served, and maintained using new age technologies. Firms that assimilate new age technologies will have a significant advantage over those that don’t.
The alternative investment funds value chain in India has been analysed for technology touchpoints, taking into account prominent technology disruptors like Big Data, Advanced Analytics, Blockchain, Cloud, Customer Experience Technology, Intelligent Automation and API/Microservices .
Big Data
Large-scale data has been critical in altering how alternative investment fund managers take decisions. Because there is no standardised or benchmarked market data across alternative asset categories, big data usage is crucial. In addition to collecting data from various sources like social media, satellite imagery, news feeds (in different formats), and policy decisions (which include pdf inputs or voice recordings), alternative asset analyses require data processing.
More sophisticated analytical techniques
Alternative assets require advanced analytics to help differentiate insights across the investment lifecycle. IoT images, patterns, sentiment/intent, and voice/text data will be increasingly analysed as part of this process. Big data technologies are used to capture new data sources and enrich data in order to generate actionable insights, whereas advanced analytics employs advanced algorithms to do the same thing with aggregated data.
Cloud computing
Cloud technology is now a hygiene feature rather than a differentiator for organisations. The importance of cloud has been re-established during the COVID-19 disaster like never before. In the private equity and alternative assets industry, legacy technologies and manual procedures cause problems, as they are inefficient and time consuming. Therefore, cloud provides a chance to transform and adopt new SaaS offerings.
It has been argued that technology that improves investor experience is underdeveloped in alternative asset management firms. Since most of these investments last for a long time, the early focus on a limited number of assets may be justified. As mainstream asset managers enter the space, and the size of assets and revenue share increases, customers’ needs must be fulfilled to ensure satisfaction.
Intelligent automation systems
Robotic Process Automation (RPA) has been extensively utilised in numerous industries to automate repetitive tasks or enhance human labour in order to enhance efficiency. RPA combined with AI allows for the next level of automation by allowing processes to go beyond human performance indicators, orchestrating and executing decisions based on AI insights. Alternative investment funds India managers should include Intelligent automation in their business procedures.
Great returns can be achieved through investing in technology.
The alternative investment funds sector has become an integral part of the investment management business. Investors are seeking out new asset classes and investment opportunities under this category. Players are assessing their businesses, operations, and growth prospects in addition to how they can satisfy ever-increasing investor demands and governmental regulations. Technology investment is taking precedence.
If an alternative investment company ignores leveraging advanced technologies as investors’ expectations and industry requirements rapidly change, industry growth will be elusive. The industry will require enhanced user experiences, agility, and effective risk management to win over demanding consumers, and technology will be the enabler.
KFintech’s AIF Solution
KFintech’s K-ALT, a proprietary technology service helps you navigate the alternative asset investment spectrum, resolve complexities in fund administration with the highest quality and provides the most cost-effective solutions.
Alternative Asset managers are often challenged by fragmented markets, legacy tech, disparate systems, and cost pressures. K-ALT suit of services provides comprehensive cutting-edge solutions helping asset managers entangle their fund administrative complexities.
