A survey from Royal Bank of Scotland International (RBSi) has found that 71 per cent of alternative investment funds see digital transformation as their greatest operational challenge.
The bank writes that the findings highlight the urgent need for industry-wide collaboration and support as funds navigate the rapidly evolving landscape of next-generation technologies.
The report, based on a survey of 100 alternative investment funds, underscores that while digital technology is seen as the key to meeting automation, compliance, and cybersecurity objectives, the path forward presents a range of obstacles.
Funds see productivity gains in AI and security benefits in blockchain and tokenisation, yet respondents identified regulatory uncertainty (71 per cent), privacy and security concerns (50 per cent), and a lack of industry consensus on platforms and standards (61 per cent), as top barriers to innovation.
The report also found that:
79 per cent of funds say cybersecurity risks are slowing their investment in innovation
97 per cent agree that overcoming digital innovation barriers will require collaboration between funds, service providers, and regulators
56 per cent plan to increasingly co-source fund administration in the future
Neil Walker, Head of Institutional Banking at RBS International, says: “Amid a wave of digital innovation sweeping through the sector, the race is on to secure value from next-generation technologies. We believe industry collaboration offers the best hope of moving forward with confidence – enabling funds to capitalise on the opportunities of innovation while managing evolving risk.
“Everyone has a role to play in that journey and our goal is to encourage dialogue, support joint problem-solving, and strengthen relationships across the value chain.”
