Distributor Library

With the market laying the automation issue at the doorstep of the Distributor, it's maybe worth pointing out that there are some valid reasons why Distributors are, in many cases, reluctant to be brow beaten into delivering what Transfer Agents and Fund Managers (as the beneficiaries of automation), want.

In fact the Distributor has a valid argument suggesting they are already automated, given they are providing TA's and FM's alike with the relevant electronic messages required to process orders. The fact that these messages are for the most part sent via Fax, might be an inconvenience for the TA and FM but, from the Distributors perspective it's a simple, proven, cost effective solution that has been in place for years. Why should it be torn up just because the TA and FM has an issue processing Faxes, especially when there are automated solutions like SCANit that can substantially alleviate the pain at the TA/FM end by reducing risk and cost through the interpretation of unstructured data and the constructing of structured data?

Most Distributors at some stage will be encouraged by its Transfer Agent(s)/Fund Manager(s) to look at its internal processes, with a view to helping reduce the costs incurred by the TA/FM of processing fund orders. Provided the Distributor is to receive a substantial proportion of the costs to be saved, then it makes sense to look at automation. If however, the savings are not being passed on then the Distributor should encourage it's TA's/FM's to look at alternative solutions like SCANit. The TA/FM using SCANit will substantially reduce cost and risk without the need to burden the Distributor with a request to change well established processes.

If you are already in the SCANit Distributor Library (please contact us to confirm), then your data format has already been mapped in SCANit and the orders you are sending to one or more of your Transfer Agent/Fund Manager counterparts is already being automatically processed by them. If you are working with Transfer Agents or Fund Managers that are doing all they can to change your processes (and you are not inclined to do so) then why not suggest they first take a look at SCANit instead as SCANit will substantially help them automate the processing of your data, at the same time relieving the pressure on you to change your processes.

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