Asset Management Automation: Challenges, Use Cases, and Implementations

According to a study by Assetspire, 80% of asset management professionals waste approximately half an hour each day retrieving investment data due to inefficient manual portfolio management practices. This results in inefficiencies, causing substantial productivity drain and increasing the risk of errors.

Asset management automation offers a solution by centralizing portfolio operations into one unified digital ecosystem. It enables smarter, faster investment decisions by improving accuracy in market data analysis, portfolio rebalancing, risk monitoring, and performance reporting.

In this blog, we'll explore the common challenges of manual portfolio management and how automation can accelerate and transform your asset management practices.

4 Common Challenges in Manual Asset Management

Infographic Showing 4 Common Challenges In Manual Asset Management

Manual asset management processes create significant operational inefficiencies for investment firms, such as:

1. Time-consuming and error-prone portfolio management

Manual asset management results in cumbersome data entry, complex spreadsheet tracking, and reconciliation delays. Errors in portfolio valuation or rebalancing can, thereby, cause financial losses or missed investment opportunities. For instance, a fund managing multiple portfolios may experience significant inefficiencies when rebalancing assets manually, making it difficult to adapt quickly to market volatility or fluctuations. 

2. Limited visibility and control over assets 

Without real-time tracking, investment portfolios frequently contain 'ghost assets' - securities that appear on balance sheets but have depreciated significantly or become illiquid. This lack of visibility leads to poor portfolio management, where firms allocate capital to duplicate positions unnecessarily while existing investments remain underutilized. The inability to monitor asset performance and market conditions in real time also results in inefficient capital allocation. As a result, transaction costs increase as positions are adjusted reactively rather than proactively.

3. Compliance risk and regulatory burdens

Financial institutions must adhere to strict regulations such as the Securities and Exchange Commission’s (SEC) Investment Advisers Act and Markets in Financial Instruments Directive (MiFID II).

Manual compliance tracking increases the likelihood of errors, missing documentation, and regulatory penalties. A missing audit trail on investment transactions could lead to fines, damaging a firm’s reputation.

4. Missed opportunities for predictive insights

Traditional asset management lacks predictive capabilities, leaving firms vulnerable to market shifts. Asset managers may overlook leading indicators of risk or investment opportunities without automation, resulting in less than optimal asset allocation.

What Outcomes Does Asset Management Automation Deliver?

Asset management automation delivers measurable improvements in portfolio efficiency, investment cost reduction, and fiduciary control. Here are six ways in which automating asset management benefits financial institutions:

1. AI-driven predictive portfolio rebalancing

AI solutions improve accuracy and reduce transaction costs in portfolio management with the precision that traditional methods simply can't match. Essentially, businesses utilizing AI for rebalancing portfolios can adapt dynamically to market changes, which is crucial for maintaining a competitive advantage in volatile markets.

2. Automated investment compliance monitoring

Automated investment compliance monitoring helps businesses adhere to regulatory requirements while enhancing operational efficiency. By implementing solutions like FlowForma’s compliance module, financial institutions can standardize compliance documentation, ensure complete audit trails, and reduce regulatory risk.

Watch this video to know more:

3. Improved security and risk control

A single security breach can hemorrhage millions from your bottom line. Automated security protocols provide 24/7 monitoring, instant alerts, and real-time fraud detection. 

 J.P. Morgan's COiN platform automates the analysis of over 12,000 commercial credit agreements annually, reducing the time required from 360,000 hours of manual review to mere seconds, thereby minimizing human error and enhancing compliance accuracy. 

4. Streamlined compliance and reporting

Keeping up with compliance requirements is complex and time-consuming, especially in highly regulated industries like finance. FlowForma has enhanced its ISO compliance by automating its information security management system (ISMS) processes, leading to increased efficiency, reduced external costs, and improved process visibility. 

5. Employee productivity and engagement

Automation doesn’t just benefit assets – it frees up employees to focus on work that actually matters. For instance, FlowForma’s workflow automation and integration capabilities eliminate manual tasks, simplifying asset management and maximizing employee productivity. 

6. Data-driven insights and analytics

Smart decision-making starts with the right data. 

AI-powered automation equips asset managers to harness massive data flows for investment strategy breakthroughs. Wells Fargo uses machine learning models to analyze vast transaction data, identifying hidden investment opportunities through its virtual assistant, Fargo®. By doing so, the company successfully draws insights from data to drive better customer outcomes and operational efficiencies.

5 Examples of Asset Management Automation

Let's explore five real-world applications of asset management automation that demonstrate its transformative impact across the finance industry: 

1. AI-powered predictive analytics for asset performance 

Financial firms are integrating artificial intelligence models to analyze vast datasets, identify market patterns, and assist in trading decisions. For instance, Tiger Brokers has embedded DeepSeek's AI model into its chatbot, TigerGPT, enhancing market analysis and trading capabilities.

2. Intelligent automation for data management

Managing large volumes of financial data is a complex and resource-intensive task. To address this, firms like Goldman Sachs are harnessing AI-driven tools to analyze large datasets for investment insights. This approach further enables them to make data-driven decisions faster and with greater accuracy.

3. Asset lifecycle management 

Broadridge Financial Solutions has implemented intelligent automation in its asset lifecycle management processes. By automating corporate actions, dividend, and coupon processing across multiple asset classes, business lines, and regions, they have enhanced efficiency and ensured effective tracking and maintenance of assets throughout their lifecycle. This approach not only improves operational performance but also supports better financial outcomes.

4. Automated reporting 

Automated asset depreciation and financial reporting improve accuracy, reduce manual effort, and enhance budgeting. By switching from paper-based processes to FlowForma's automated digital flow, Grant Thornton improved efficiency by 60% – with faster and more accurate reporting, cost-cutting, and streamlined asset management and compliance. 

5. Automated employee offboarding  

Automated employee offboarding and asset return reduce security risks, prevent asset loss, and enhance efficiency. Take Aon’s example, who fully embraced FlowForma’s Process Automation as part of its digital transformation strategy, saving time, increasing efficiency, and staying compliant. From having no standard process in place to building a fully functional flow in less than a day, FlowForma simplified AON’s processes, introducing the company to advanced functionality.

Learn more about use cases across asset management and the wider financial services industry in our recent webinar: 

6 Steps to Implementing Asset Management Automation

Infographic Showing 6 Steps to Implementing Asset Management Automation

You know automation is crucial - but where do you start? Let's break down six ways you can implement asset management automation to transform your processes:

1. Identify key asset management challenges

Start by assessing where your current asset management system falls short. Are assets frequently misplaced due to poor tracking? Do maintenance delays lead to capital expenditure planning? Is financial data scattered across multiple platforms, making visibility a challenge? 

Identifying these pain points upfront ensures that the automation efforts target real management issues and drive financial efficiency. 

2. Select the right process automation platform

Take your time to select a platform that will meet your process automation goals. Does the platform have all of the features and functionality to scale the automation of your business processes while showcasing ROI to justify the technology investment? 

3. Automate and streamline workflows

Replace manual asset tracking, depreciation calculations, and compliance audits with automated workflows that ensure consistency and accuracy. Automated alerts for maintenance, real-time portfolio tracking, and self-updating asset records reduce human dependency, minimize errors, and enhance operational agility.

4. Ensure seamless integration with ERP or CRMs

A standalone asset management solution is only as good as its ability to integrate with core financial systems. Without integration, you’re still working in silos. 

Ensure your asset management automation tool syncs seamlessly with your ERP and CRM systems, enabling real-time updates, unified reporting, and cross-functional collaboration. This is imperative for ensuring compliance, optimizing investment decisions, and maintaining complete financial visibility.

5. Ensure easy adoption, usage, and scalability

A sophisticated solution that’s difficult to adopt will fail before it delivers value. Opting for no-code platforms allows finance teams to build and adjust workflows independently. This accelerates adoption, reduces reliance on IT, and ensures scalability as asset management needs evolve.

6. Continuous improvement and optimization

Automation isn’t a ‘set-and-forget’ initiative. Regularly analyze system performance, track usage patterns, and refine workflows based on data-driven insights. Identify additional automation opportunities, whether it’s integrating IoT sensors for asset depreciation tracking or using AI-driven analytics for financial forecasting. 

Simplify Asset Management Automation with FlowForma

FlowForma offers a comprehensive solution for modernizing financial asset management automation through its intuitive platform. Here's how:

Eliminate manual effort and reduce errors by automating financial asset management 

FlowForma's automation capabilities eliminate time-consuming manual data entry for asset management organizations. The platform captures and updates information in real time, from financial information to investment information, while ensuring data accuracy across all reporting and tracking points. This minimizes errors in financial data, ensuring greater success for both the organization and its clients.

FlowForma's AI Copilot does the heavy lifting by allowing businesses to build processes faster, smarter, and more intuitively with gen AI at their fingertips. Harnessing the power of AI, it empowers users to take control of their automation efforts with unprecedented ease and intelligence.

No-code approach for seamless deployment and management

The platform's no-code interface empowers business users to configure and modify asset management workflows without technical expertise. 

Insights for decision-making and efficiency

FlowForma’s insights provide actionable recommendations for asset management decisions. The platform provides  decision-makers comprehensive dashboards that enable them to forecast risks, optimize budgeting, and pinpoint areas for investment. 

Automate compliance and reporting for stress-free audits

FlowForma streamlines compliance management by automatically generating comprehensive audit trails and reports. It maintains detailed documentation of investment movements, maintenance records, and compliance checks without manual intervention. During audits, teams can quickly produce required documentation and demonstrate compliance with regulatory requirements. 

Ready to automate asset management? Start your free trial of FlowForma today or book a demo to see how its asset management automation can enable smarter, faster investment decisions, improve accuracy in market data analysis and manage risk.