Automation marches on

The automation rate in the fund industry increased to 83.5 percent in Q2 2015 from 82.6 percent in Q4 2014, according to a new report from the European Fund and Asset Management Association (EFAMA) published in co-operation with SWIFT, on the evolution of automation and standardisation rates of fund orders received by transfer agents (TAs) in the cross-border fund centres of Luxembourg and Ireland in the first half of the year.

The report is an ongoing campaign by EFAMA and SWIFT to highlight the advancement of automation and standardisation rates of orders of cross-border funds; 29 TAs from Ireland and Luxembourg participated in this survey, representing more than 80 percent of the total incoming third-party investment funds order volumes in both markets.

The total order volume of cross-border funds increased by 11 percent to 17.5 million orders in the first half of 2015, from 15.8 million orders in the second half of 2014. The use of ISO messaging standards rose by 3.8 percentages points (p.p.) to 53.2 percent, while the use of manual processes and proprietary formats (FTP) dropped to 16.5 percent (-0.9 p.p.) and 30.3 percent (-2.9 p.p.), respectively, in the same time period.

The total automation rate of orders processed by Luxembourg TAs reached 81.2 percent in Q2 2015 compared to 81.3 percent in Q4 2014.  The ISO automation rate increased from 57.9 percent in Q4 2014 to 64.3 percent in Q2 2015, while the use of proprietary ftp decreased from 23.4 percent in Q4 2014 to 16.9 percent in Q2 2015.

The total automation rate of orders processed by Irish TAs increased to 88.3 percent in Q2 2015, from 85.6 percent in Q4 2014.  The percentage of automated orders based on the ISO messaging standards increase to 30.7 percent in Q2 2015, from 29.5 percent in Q4 2014.