Today, almost all sectors are leveraging the power of automation. Artificial Intelligence (AI), along with Machine Learning (ML), has induced automation in business operations. Several use cases of AI in the finance industry, from credit analysis to fraud detection, can be found.
Client reporting is one of the processes benefiting from automation technologies. Asset managers, investment banks, mutual fund issuers, and other entities are embracing automation to boost efficiency. These new-age technologies have helped reduce errors in client reports, thus improving accuracy. Read on to understand how automation can help streamline Client Reporting processes for improved efficiency and accuracy.
Demystifying Client Reporting
Client reporting refers to creating and delivering reports to clients in the finance industry. Entities in the wealth and asset management industry often provide periodic reports to clients/investors. For instance, Asset Management Companies (AMCs) offering mutual funds publish fund commentaries for investors regularly. Similarly, financial institutions prepare securities lending, holding breakdowns, investment committee reports, etc. These reports educate clients and aid in decision-making. Insights, metrics, and report findings allow investors/clients to make informed decisions. Financial institutions must streamline client reporting processes to meet client expectations.
Here are some examples of client reports for proper understanding:
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AUM Reports: AUM reporting is indispensable for mutual fund and ETF providers. It contains information regarding the fund’s asset allocation and helps investors understand the distribution of different financial information in their portfolios.
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PRIIPS/KIID Reports: You might have heard of Packaged Retail and Insurance-based Investment Products (PRIIPS), a European Union (EU) regulation for investment products. PRIIPS regulation compels financial institutions to provide investors with Key Investor Information Document (KIID) reports. Investors can understand the features, risks, and costs of different investment products through PRIIPS/KIID reports.
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Custom Client Reports: In addition to standardized reports, financial institutions prepare and distribute personalized reports to match clients’ individual preferences.
How Automation Streamlines Client Reporting Processes?
Now that you understand the concept of client reporting, here’s how automation streamlines different reporting processes:
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Data Collection
Diverse client reports require data from different sources. Analysts and researchers collect data from portfolios, CRM platforms, industry news, and other sources. Client reporting processes can only be streamlined with a sold data collection strategy. AI tools can automate the data aggregation process, thus saving time for analysts.
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Data Analytics
Client reporting requires data insights, metrics, or Key Performance Indicators (KPIs). Unstructured data will make no sense to researchers and analysts. Data analytics is essential to extract meaningful insights from structured data. Once data is processed, these tools can identify patterns and hidden insights. Analysts can use these insights to prepare effective client reports. Clients love reports with metrics, ratios, numbers, and other relevant information.
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Report Generation
AI tools can generate reports quickly based on different preset templates. There’s no need to waste time creating reports manually. Automating report generation will help reduce the chances of human errors. Financial institutions can generate reports on demand for their clients. These report-generation tools also add a touch of personalization for enhanced engagement. AI-led tools can take input data from data analytical systems and generate reports instantly.
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Automated Report Delivery
Financial institutions have strict schedules for delivering client reports. Also, some clients might be strict when it comes to period reports. It can be challenging for financial firms to create and deliver timely reports to different clients. A delay might negatively affect the professional relationship with the client. Luckily, firms can rely on automation technologies for timely report delivery. AI-led tools can deliver period reports to clients without fail and without manual interruption.
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Quality Control
Quality control is an integral part of client reporting to improve accuracy. Analysts and publishers check for errors in reports before delivering them to clients. AI tools can run audits or checks on reports, thus improving accuracy.
Besides the aforementioned processes, automation can be used for performance tracking, formatting, error handling, client notification, document management, archiving, vendor management, workflow automation, and other tasks.