Bravura has published new research highlighting that fragmentation in the funds industry is ramping up risk and cost for firms.
The whitepaper entitled ‘The Hidden Inefficiencies of Fund Transaction Networks’, surveyed UK and global asset servicers representing USD108 trillion in funds under management (FUM).
The research showed that half of respondents rely on at least six different fund transaction networks, each requiring their own setup, oversight and maintenance. This leaves firms stitching together data from multiple networks, adding unnecessary complexity and operational burden. Still, in 2025, firms are having to allocate dedicated resource just to manage connectivity and manually consolidate data for trade execution and reporting.
Respondents highlighted operational inefficiencies, reputational risks and resource burdens caused by fragmented connectivity. In contrast, consolidating connections into one streamlines operations, giving firms complete visibility of their trading activity.
In moving to a unified infrastructure, respondents saw potential for business growth and the ability to scale at a fraction of the cost. Some 88 per cent of respondents reported lower operating costs, driven by the smaller team sizes required to manage and monitor networks, and less time spent on data handling and reconciliation.
They also said automation and a reduction in manual processes led to fewer trade errors. 25 per cent reported improved liquidity owing to the comprehensive overview of all fund trades and their settlement status.
Chris Biddick, Chief Executive Officer, Transfer Agency at Bravura, says: “Asset servicers are processing a vast volume of trades each month worth billions of pounds, which is complex, and data errors can quickly snowball into major operational bottlenecks. With the majority of firms using multiple fund networks, this introduces greater risk, cost and complexity.
“Our new whitepaper highlights the operational challenges asset servicing providers face due to this fragmentation across the industry. It illustrates the benefits firms report when adopting a unified approach to infrastructure which reduces some of these risks and frees up resource so firms can concentrate on their core business rather than managing connectivity and data.
“A single connection to all fund transaction networks enables firms to manage changing client demand without requiring wholesale process or technology change.”
Download the full whitepaper The Hidden Inefficiencies of Fund Transaction Networks here.
