SimCorp, an independent provider of SaaS (Software as a Service) investment management solutions, has launched Investment Accounting as a Service in response to increased demand from buy-side clients to outsource back-office functions.
The trend towards outsourcing accounting services has been led by a desire for buy-side clients to focus on their core activities and deliver quality of service.
“As part of our strategy to become a true technology-enabled services company, we are extending our offering to take on additional responsibility for delivering the business outcomes that enable clients to achieve their strategic objectives,” says Christian Kromann, CEO of SimCorp.
SimCorp’s multi-asset class Investment Accounting as a Service will deliver timely, accurate and transparent multi-jurisdictional and regulatory compliant accounting; analytics and reporting; together with an advisory overlay. The service provides interoperability and validates post trade data, performs reconciliations, and ultimately ensures international accounting standards compliance.
The service is based on the market leading SimCorp Dimension with its proven track record of 200 global clients managing over EUR30 trillion AUM and achieving 95 per cent straight through processing (STP). Clients using the Investment Accounting as a Service can interact with data via an intuitive cloud-based digital self-service portal, which consolidates both accounting and non-accounting post-trade data across multiple asset types, including traditional assets, derivatives, and alternative investments to enable analysis and generate enriched business insights.
The design and implementation of the complete offer encompassing SaaS technology and service delivery, has been led by Jaki Walsh, VP Operations & Accounting, who has a track record of successfully building and managing back-office development and delivery on the buy-side over the last 15 years. The technology is further enhanced by an experienced global service delivery team, including operations analysts and qualified accountants with an average of 15-years’ industry experience from top tier investment managers. SimCorp will also continue to build its Investment Accounting team of experts as the business grows, to maintain its high levels of client service
This new solution was developed in response to a clear demand from its buy-side clients and partners for accounting services. A recent survey conducted by SimCorp found that over half (57 per cent) of buy-side respondents currently use managed services within investment operations and accounting, and the vast majority (89 per cent) also believe they will increase their usage of managed services over the next three years. Of those not currently utilising managed services within operations and accounting, over half (55 per cent) would consider it in the future.
“We see a decisive opportunity to increase the value we deliver to our clients – and we are in a very strong position to support them with this, as we have superior technology capabilities which will be key to unlocking the next frontier of service automation and operational efficiency,” says Christian Kromann, CEO of SimCorp.
Nearly all buy-side respondents surveyed by SimCorp listed more than one reason for utilising managed services, with the main factors being improving levels of service (73 per cent), allowing respondents to focus on core activities (69 per cent) and mitigating resourcing risk (65 per cent). Notably, cost reduction was the least important reason (31 per cent) for using a managed services provider, but this was an important factor at the selection stage for the majority of respondents (84 per cent).
Jochen Mueller, Executive Vice President, MD Operations and Accounting Services at SimCorp, says: “We are seeing additional demand from clients in the way they access and consume technology services. The majority of our buy-side clients no longer want to just buy software – they increasingly want to fully outsource the accounting and regulatory reporting process. While cost is certainly a factor when it comes to choosing a provider, our clients also seek advice on implications and changes in the accounting and
they look for a provider that covers a broad range of asset classes. Clients are increasingly looking for their investment management solutions provider to act as an extension of the business, overseeing the technology and outcomes, rather than seeking an off-the-shelf product.”
