How To Achieve Digitization in Asset Management?

Asset Management

The digital shift is transforming the business of asset management and financial planning services. Banking and financial services are integral parts of the financial system. Transactions involving portfolios of assets and liabilities that are professionally managed through the traditional route of fund and portfolio managers are embracing technology to compete with efficient and secure models.

Need For Digitization in Asset Management

Consumer sentiments underwent a sea change and access to information is no longer an impediment for them. Investor attitudes are changing over time as they seek asset compliant solutions. Investors now take informed decisions that allow them to manage asset allocation that can meet the purpose of their life goals while maintaining the risk balance. Following changes are accelerating the need for digitization of traditional portfolio management:

  • Investor’s willingness to try digitally enabled tools
  • A desire to invest with a purpose for goals like retirement or wealth creation
  • A requirement for higher integrity and security standards
  • Higher transparency
  • The intent to move to other enablers if their needs are not met

Surprisingly, studies show that digital tools and smart dashboards that depict real-time valuation of the portfolio are in demand from older and traditional investors as much as it is from millennials and Gen Z investors.

The underlying essence of investment is not changing even after digitization for asset management services and that is the security features. However, with everything being on the cloud, digitally safe eVaults and eSigning are normal expectations from an asset management company. Going forward the regular common investor and the ultra-rich investor will have one purpose beyond the expected risk-reward ratio and that is secure vaults to keep their assets safe electronically.

Transformation through digital vaults

Financial services organizations such as banks, stock exchanges, brokerage houses, custodians, and asset management companies such as pension and hedge funds benefit from the transformation offered through efficient methods of organizing, storing, and managing data and documents through digital or electronic vaults.

Digital vaults are security deposit lockers albeit in the cloud where one can store, manage and retrieve all their legal, personal, and financial information and asset ownership records in one place.

Important documents related to ownership of immovable assets such as title deeds, bond papers, estate planning wills, marriage, birth and death certificates, other legal documents, and personal IDs are some of the common papers that can be electronically stored for safekeeping in a digital vault. It is the virtual equivalent of security storage which requires a single point of reference for any individual or organization. In the age of automation and tech, a digital or an eVault helps in data accessibility, storage, and security encryption through a low-cost model.

Benefits of incorporating eVaults in asset management

  • Integrates with Workflow

Asset management is a document-centric service and involves a lot of paperwork. For instance, if a particular client would like to pledge their family holdings to invest in an initial public offering of a new listing on the exchange, documents relating to pledge and lien on shares will be effective from the time the margin is availed through the broker or a bank that is covering the cost of acquisition. It is imperative that all these documents have to integrate with all the different ledgers so that all the statements reconcile.

An eVault can integrate into the natural workflow from the start to the finishing stage of the cycle. Every trade is reconciled through multiple layers of cross-checking ranging from custodian to back office. The end value of all liquid assets has to match the closing market value in the vault every day.

  • Automation

When a vault is integrated into the existing enterprise software of the financial services company, automation will yield efficient results. If a client wants to access simple statements, all the details are displayed including the dashboards with easy-to-understand infographics with real-time values.

  • Frees Capacity of Employees

As more people started tapping the financial markets and became aware of asset classes beyond the traditional saving in term deposits, consumer growth increased. However, without automation that promises security, finserv organizations were finding it difficult to enrich their consumer experience through better relations.

  • Streamlined and Secured Operations

With an integrated eVault, an automated business process can optimize operations and free up the capacity of employees. The time saved is used to build trusted relationships with clients.

Some of the key areas of automation aid in streamlining the onboarding process through document standardizations, meeting asset compliance, and regulatory requirements, authorization to trusted employees, and access only to the key portions within the vault space that can enable the workflow without causing any detrimental impact to clients.

  • Eco-friendly

Paper is an essential commodity in finserv and as the days proceed, everything will be digital and archived. The need to sign the papers is also a thing of the past with e-signatures and two-factor verification codes and standardized encryption to protect the value and worth of the assets of an investor. Electronic signatures and verification are replacing the standard requirement for signing any documents including wills and trusts.

Going paperless is now possible in financial services. A vault in the clouds finally has a role to play in saving the planet and allowing the formation of real clouds that can provide relief rains to dry patches of land that are on the brink of losing the battle to climate change.


Electronic vaults will become the game changer for all custodians and storage-keeping features for the financial services sector. With multi-tier permissions and enough access to authorized personnel for seamless workflow, an online digital vault can be featured as the strength to acquire customers and build their trust going forward. In portfolio management and banking services, data safety is a paramount feature.

Investors are willing to trade a notch in the rate of return versus the risk associated with the loss or theft of information. The entities that will measure up and incorporate eVault service platforms must stand to win the trust and business of future investors.