Transfer agents are evolving to meet changing marketplace challenges and demands and are rapidly becoming more than just a recordkeeper. With the accelerating pace of technology innovation, leading asset managers are partnering with their transfer agent as a strategic element of their growth strategy. Transfer agents already help asset managers improve distribution, deliver superior investor and advisor experiences, and gain greater insights into data.
So, what should asset managers look for in a transfer agency provider in order to achieve the optimal strategic value from the relationship? There are six “must-have” capabilities that asset managers should expect from a transfer agent:
Contemporary, constantly evolving technology infrastructure—transfer agents need to have a modern, high-security backbone that is consistently being improved to address evolving threats and take advantage of rapidly emerging technology.
Global reach, local knowledge—transfer agents must navigate a maze of regional regulatory regimes and accounting standards. Partnering with a transfer agent with presence and capabilities across all jurisdictions gives fund managers a cost-effective and efficient solution.
Data aggregation across the financial system—asset managers need a transfer agent that can provide service and support across the entire investment ecosystem, from alternative retail platforms and wealth managers to retirement plans and insurance providers.
A global view of the customer—only through a global view of the customer is a data-driven sales and distribution strategy truly possible. A global transfer agent alleviates the costs of in-house data collection and analysis while also allowing firms to attain an enterprise view and value of their customer base.
The power of data—when analyzed by advanced machine learning algorithms, the data held by a transfer agent contains invaluable insights that allow sales teams to have more precision and focus in their efforts and more efficiently pinpoint high-value sales targets.
Financial strength and technology innovation—transfer agent needs to invest continuously in innovation and stay at the forefront of emerging technology. Only a firm that operates its transfer agency service as an independent business has the incentive to make these investments.