As the Director of IT and Process at Basiz Fund Services, Dr Sujata Seshadrinathan has witnessed firsthand how technological innovation is reshaping the industry, driving efficiency, reducing costs, and enhancing client satisfaction.

Blockchain: Transforming Transparency and Asset Accessibility

As one of the few who holds a doctorate focussing on blockchain adoption, Dr Seshadrinathan says that blockchain is no longer a futuristic concept but a present-day solution that is reshaping fund administration. Blockchain technology promises a level of transparency and immutability that traditional reconciliation-based systems cannot match.

Tokenization is one of the most promising applications of blockchain. Converting physical and financial assets into digital tokens, facilitates fractional ownership, thereby unlocking liquidity in traditionally illiquid assets. This means new investment opportunities and more flexible fund structures. Blockchain’s ability to provide real-time insights into fund activities and streamline regulatory reporting offers an additional layer of security and efficiency, helping the clients comply with accounting standards like US GAAP and IFRS.

“At Basiz Fund Services, we leverage blockchain’s capabilities to enhance the accuracy and speed of our transactions. By adopting distributed ledger technology (DLT), fund services can offer clients a single, tamper-proof source of truth, thus eliminating the need for intermediaries and reducing administrative overhead. This proves to be especially beneficial in managing complex asset structures across various strategies, from hedge funds to mutual funds,” said Dr Sujata.

Artificial Intelligence (AI), Machine Learning (ML), and Robotic Process Automation (RPA)

“AI and ML are making a deep impact on fund management. At Basiz Fund Services, we see AI and ML as crucial tools for predictive analytics, risk management, legal contracts and agreements and operational efficiency. Predictive capability is a game-changer in fund management, allowing for more informed decision-making and proactive investment strategies. With AI-powered analytics, we can anticipate risks, optimise portfolios, and identify new investment opportunities, ultimately improving returns for our clients”. AI algorithms can process large volumes of data to identify patterns and predict market trends with much greater accuracy than traditional methods. “RPA, ML & amp; AI are also making an impact on fund administration where more tasks are automated to render accuracy, reliability and repeatability and quality in fund administration”, said Dr Sujata. AI-driven automation also plays a role in operational efficiency by streamlining administrative tasks. From automating report generation to analytics, speeding up the onboarding process, AI reduces the burden of manual work, allowing skilled professionals to focus on high-value activities.

Moreover, ML techniques are enhancing risk management by continuously analysing historical data to detect anomalies and potential threats in real time. In an environment where regulatory requirements are constantly evolving, using AI and ML to automate compliance checks helps organisations stay ahead, reducing the risk of regulatory breaches and ensuring adherence to the latest standards.

The Road Ahead: A Holistic Approach to Technological Transformation

“As we continue to invest in these technologies, the focus remains on delivering superior service quality, ensuring compliance, and driving value for our clients. The journey towards a fully automated and digitalized fund services industry has only just begun, and Basiz Fund Services is at the forefront, committed to navigating the complexities of this transformation and unlocking new possibilities for our clients,” remarks Dr Sujata. We also see a lot of impact of these technologies in our Basiz Master Draft, the legal tech software that has made contracting democratic and efficient, introducing reliability in the drafting process and quality.

While each of these technologies—AI, ML and Blockchain offers significant benefits individually, their true potential is realised when they are integrated into a holistic technological transformation strategy. The future of fund services lies in a data-driven approach that combines AI’s predictive power and blockchain’s transparency. By embracing these technologies, organisations can provide the clients with a competitive edge in an increasingly complex market. This transformation will not only automate existing processes but also reimagine the entire fund services ecosystem to create more value and achieve better outcomes.

The integration of AI, ML, and Blockchain is not just about keeping pace with change, it is about leading that change to shape the future of fund administration.

The future is now, and we are excited to embrace it.

Disclaimer: This article is written by the Brand Desk and is intended solely for informational purposes.

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