Remote Working Shows the Value of Real-time Online Information
Remote Working Shows the Value of Real-time Online Information
June 2020
By Rachel Turner
Volatile market conditions, high trading volumes and remote working prompted by the COVID-19 pandemic have led to operational challenges for asset managers. At the same time, the understandable anxiety of their end investors has spurred a demand for increased access to real-time information. There has never been a greater need for reliable information and technology that can facilitate transactions and flexible reporting, as and when required, and irrespective of the user’s location.
Asset managers and intermediaries without access to online tools have traditionally relied on emails, overnight feeds or scheduled, timed reports that arrive via various unintegrated technologies. During periods of market volatility, prompt notification of investor trading is imperative; an investment manager needs clear and punctual information to enable them to optimise market positions. Relying on traditional arrangements could create potential inefficiencies and delays in reporting.
With staff working from home since March, timely access to information has become critical. Emails, overnight feeds or other technologies may introduce potential points of failure or delay for day-to-day activities. Consequently, such arrangements are no longer seen as optimal by many asset managers and intermediaries. At a time when clients are seeking frequent, timely and detailed information, delays in generating reports among firms that rely on emails and overnight feeds could make it more challenging to meet investor demands.
The Online Alternative
Since the COVID-19 pandemic began to affect global markets in March (and asset managers and intermediaries moved to remote working), BNY Mellon has seen a surge in interest in its Transfer Agency (TA) Online solution, a secure, self-service tool for fund managers, distributors and their institutional or retail clients. Site traffic across the product suite has increased 30% since March1. In many instances, we have worked with clients to find solutions to meet specific reporting needs that address their operational efficiency and work flow challenges.
TA Online delivers real-time online information. It enables asset managers to create reports (based on their specific requirements) as well as click and download standard reports based on near-real-time data. Access to real-time information about net cash flow activity is critical in a volatile market environment and there has been a 60% increase in institutional user activity on TA Online since March1. By enabling asset managers to monitor the impact of redemptions and subscriptions, TA Online facilitates informed investment decisions. Clients can also interact with BNY Mellon’s operations team via online secure messaging.
For end investors, the market turmoil has increased anxiety about the value of holdings and many have begun to take advantage of the online tools available from fund managers and distributors. As a result, asset managers’ websites have seen a significant increase in traffic as users seek to review their fund investments and performance. On BNY Mellon-serviced sites, there has been a 134% increase in usage, with 351,554 more screen views than usual, since March1. As online activity has increased, concerns about security are paramount. TA Online, which can be client branded for retail use, is hosted on a secure domain with two-factor authentication.
TA Online has enabled end investors to continue to trade funds. With market swings of up to 10% a day, uncertainty of receipt and value is a concern. Using TA Online, investors can place an instruction just before a fund is valued giving them greater certainty of execution and pricing. The solution offers bulk dealing and utilises straight-through processing (STP). With intermediaries and distributors working from home, there has also been growing demand for TA Online, with a 34% increase in use – or more than 255,000 screen views – since March1.
Managing Business As Usual
Using TA Online has helped asset managers and intermediaries to operate business as usual despite challenging circumstances, maintaining transaction flow – against a backdrop of huge increases in volume – and ensuring comprehensive and timely reporting. Clients already using TA Online did not need to make changes to their processes when they switched to remote working; they were able to access the same information and tools that they have in the office.
BNY Mellon has also been able to help many clients to access these capabilities for the first time in the weeks since remote working began.
Self-service reporting and the other functionality available through TA Online have long delivered efficiency benefits for users. However, the market turmoil of March and April has demonstrated that by providing timely information, the solution can also play a crucial role in supporting funds’ performance and strengthening operational resilience for asset managers and intermediaries. At the same time, TA Online has ensured retail investors have access to the information they want and can trade in and out of funds even during periods of significant market volatility.
1All data sourced from Bravura Solutions, as at 4 May 2020, based on data between 1 January - 4 May 2020