Investment Operations in the New Normal

What will investment firms look like when they return to their typical operations? It may not be the most pressing question of the times, but it’s an important consideration for us at Smonik Systems. How will the crisis affect back offices? Will operational teams go back to their buildings or continue to work from home? Words like “unprecedented” and “uncertainty” have been overused in this situation, but there have been few alternatives. The impact will be pervasive and profound, affecting every business in some way including investment firms, but predictions are hazy. Although we cannot foresee all the changes that will take place, we must try to plan for the future of investment operations.

The significant macro-economic damage caused by the crisis has brought more risk to investing. Investment firms have been forced to adapt their strategies amid severe volatility from unstable market conditions. Valuations have adjusted during the crisis, making it necessary to monitor assets more closely. Timely, accurate data is crucial, as is frequent communication with apprehensive clients.

To stay on focus during this turbulence, firms are increasingly looking to third-party vendors to relieve operational burden. Automated solutions such as Smonik that can process and reconcile data, then deliver it seamlessly to downstream systems provide vital support for busy firms. They are faster and more accurate than remote teams using manual methods to process data. They are also less expensive, adding to their value in difficult times.

Will this trend continue when we return to a more normal state of business? The value of third-party vendors for investment operations has been proven during the crisis, making it inevitable. Companies like Smonik will continue to provide an advantage to firms who utilize them, delivering crucial data more efficiently than manual methods. It is a synergy that will persist, one thing that we can be sure of in the future.

This crisis has forced transitions on many businesses, the extent to which has yet to be seen. There will be some good to come out of it, as investment firms who have become more efficient through third party solutions such as Smonik can confirm. Smonik is prepared to transform your operations. Is your firm ready for the future?