Emma Beall, head of operations at Affinity Capital, describes how the company's fintech solution, ACE, has revolutionised its approach to the administration of structured investments.
The administration of structured investments has traditionally created problems between investors and investment banks. Disorganisation has resulted in unnecessary costs, trade failings, settlement breaks and a great deal of misunderstanding on all sides.
These issues smothered growth in the space, and investment banks were forced to release lower-quality structured investments to account for the overwhelming administration cost and burden.
Emma Beall, head of operations at Affinity Capital, admits that administration might not be the most exciting part of trading, but it’s essential to a smooth running and mutually beneficial service.
“Trade support and administration has never been an area that gets most investors’ hearts racing,” she says.”For too long, the disconnect between investors and investment banks when it came to the organisation of structured investments was chaotic.”
Unsurprisingly, investors and issuers began moving away from the space to take advantage of better managed options. Without fundamental changes to structured investment administration, the asset class was never going to reach its full potential within the industry.
Ultimately, we recognised a fundamental gap in the market for quick, efficient and accurate trade support and administration. Predicting the huge impact financial technology (fintech) would have on the industry, we began building a sophisticated and interactive administration platform called ACE.
Since launching in 2011, our aim has been to perfect a solution that checks, validates and condenses down every investment or order we receive. The result? Investment banks receive relevant and accurate information on each trade, without any additional workloads at their end.
Furthermore, investors who have multiple trades across various accounts benefit from maximum efficiency and the elimination of trade support errors. It’s a win-win for everyone involved in the structured investments process.
“Our scalable solution minimises settlement issues and disputes, allowing banks to reallocate resources to growth-oriented areas of their businesses,” Emma states.
“Alleviating this considerable burden is key to making structured investments efficient and far more competitive for investors.”
Investors who wish to benefit from the wholesale proposition have to act in a wholesale way, and ACE delivers the necessary efficiencies to transform outdated structured investment administration models.
To learn more about ACE or Affinity Capital’s other offerings, please click here. To view more of our videos explaining our services and the structured investment space, visit our dedicated videos page.