The Investment Manager’s Guide to Fintech Solutions

The landscape of investment management is fraught with potential pitfalls, especially within the complex web of the supply chain. Amidst the quest for seizing untapped market opportunities, there’s a lurking danger—a single misstep in supply chain management can be as detrimental as it is expensive.

In the UK alone, the regulatory fines amounting to a staggering quarter of a billion pounds each year serve as a stark testament to this reality. Notably, one in four of these penalties originate from lapses in supplier management processes.

The stakes are high, with nearly £60-70 million in fines associated with supply chain issues annually. For those in the financial sector, these figures aren’t mere statistics; they’re a clarion call. The gravest risk isn’t just financial loss—it’s the existential threat to the business itself. The sobering scenario of regulators knocking on the door to scrutinise an investment manager’s supplier selection, oversight, and monitoring is a scene that no firm wants to enact.

Wealth and asset managers are sometimes lulled into a false sense of security. The assumption that monitoring another regulated business is unnecessary, under the guise that ‘they are regulated for a reason’, is a perilous oversight. The regulator is not the bogeyman of the financial world, nor are they the custodians of our business decisions. Their presence is not to govern our operations but to ensure we maintain high standards within our own domain, including supplier activities.

This is where the role of fintech becomes paramount. Fintech solutions, like those provided by VENDOR iQ, offer a dual advantage. Firstly, the right fintech partner can unlock a plethora of benefits, from operational efficiencies to enhanced regulatory compliance. They provide the tools to keep a vigilant eye on the supply chain, ensuring that every component—from consumer duty to the Senior Managers and Certification Regime (SMCR)—is not only understood but also actively managed to mitigate any potential risks.

Secondly, and perhaps more critically, fintech solutions are designed to keep investment managers ahead of the curve. They act as an early warning system against supplier-related risks, delivering real-time data and insights that inform better decision-making. With a technology-driven approach, fintech can guide investment managers through the due diligence process, much like a test drive for new cars, ensuring that suppliers are thoroughly vetted and monitored.

Fintech partners like VENDOR iQ stand as bulwarks against the threats posed to investment managers. They are not just tools but strategic allies that integrate into the fabric of the business, enhancing capabilities, and fostering a culture of proactive risk management. By leveraging fintech, investment managers can ensure they are not just compliant but also competitive, turning potential risks into assured confidence.

In the high-stakes environment of financial services, keeping abreast of supplier activity and regulatory changes is non-negotiable. Fintech offers the intelligence and oversight necessary to navigate these waters safely. It’s an investment in security, an assurance of standards, and a commitment to excellence that will differentiate the prudent from the precarious.