Transfer Agency – Technology or People Business?

Transfer Agency has come a long way from the manual records and filing cabinets of yesteryear to the slick STP systems of today.  Periodic revolutions in technology have led the industry towards the panacea of single platform, multi-market TA.  The future is blockchain and AI, so to what extent will we need human TA specialists in future?

Looking at where we are now, we still hear of manual workarounds and even fax machines used in some operations.  Systems developed to provide a global solution often haven’t satisfied the quirks of the UK market, leaving local management to fill the gaps.  A typical TA administrator might be hired as much for their Excel skills as for their knowledge of the COLL rules.

Even quite recent evidence from large scale TA system developments has shown that one size does not necessarily fit all.  Compliance regimes differ across markets; management company clients have contrasting requirements of their TA providers. The future is data capture and use of agile systems to provide flexibility in terms of processing and output; in the meantime, compatibility remains an issue.

AI might eventually be seen as a boon to the average TA administrator – the boring bits will be automated and the role will be more oversight, less data processing.  The role will be client and investor focused, delivering service and managing change.  Knowledge is key – a trained human eye can ensure the right outcomes.

So TA is becoming a technology business, but we’re not there yet and even technology businesses need strong technicians.