A new study has found that wealth and asset managers are making automation a priority in their business in response to the challenges posed by manual processes.

More than half of wealth and asset managers surveyed by automated reconciliation firm AutoRek and Worldwide Business Research said the number and volume of manual processes in their business was a significant challenge in their day-to-day operations.

Availability of automated systems and appropriately qualified staff were ranked among the top concerns for businesses.

"The pandemic has been an opportunity for businesses to learn about their organizations in a way few would have considered before," said AutoRek consultant Murray Campbell.

"By testing capacity to the max, many businesses have discovered what they are really capable of and where they need further investment and support."

According to 60% of respondents, compliance is the biggest challenge for businesses.

The majority of firms said they plan to invest more in technology over the next two years to help meet regulatory requirements with a focus on operational resilience and prudential regulation.

Ninety-four percent of businesses now have a dedicated annual budget to provide automation for operational functions, with half of businesses allocating £500,000 ($925,000) or more.

The survey also found that 27 percent of respondents said their organization's budget for delivering operational improvements has increased significantly due to the pandemic, potentially leading to more automation action.

"As the regulatory landscape continues to evolve, it is clear that most, if not all, organizations would benefit from external assistance – not only in the form of off-the-shelf technical solutions, but also advisory expertise," said Mr Campbell.

"Aware of the availability of the right solutions and consultants to implement automation is a challenge in itself."

John Bragg

John Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.