The asset servicing industry cannot be ignored. Expected to reach the size of USD 271.3 billion by 2033, the industry continues to rely heavily on market performance and healthier net flows.

But, even with a projected growth of 26.6% by 2030, challenges like fee compression, increased regulatory scrutiny, and high operational costs still affect the industry. Additionally, investors want more personalized and transparent services, meaning asset managers must adapt quickly to continuous innovation.

Today, artificial intelligence (AI) and machine learning have become strategic enablers to asset managers. With platforms like RAISE, the asset servicing industry now offers superior client outcomes with cost efficiency.

This guide highlights how RAISE is reshaping the asset finance industry with tech-based solutions.

How Has The Asset Servicing Industry Evolved?

The asset servicing industry continues to evolve each day. Technology, changing investor preferences and even sustainability continue to shift how we manage investments, distribute risks and even tailor to individual investor needs.

Additionally, the growing popularity of alternative investments has created a growth opportunity for the asset servicing market. 

Alternative investments like private equity, real estate, and venture capital offer investors the needed diversification and potentially higher returns compared to stocks and bonds.

Today, asset servicing has moved beyond the traditional risk profiling and portfolio matching for traditional assets. The industry now offers customization, where even at scale, automation and Artificial intelligence (AI) enable us to give investors hyper-personalized investment portfolios.

With AI adoption, manual workflows have significantly reduced, improving efficiency and better service delivery for fund managers and investors.

Here’s how:

  • • Automation and AI: Combined with machine learning (ML), AI offers better analytics, fraud detection, and portfolio optimization. Investment managers can use it to identify successful companies to invest in earlier. Fund managers can even analyze a company from the available public information in minutes, not days.

  • • Blockchain & Distributed Ledger Technology (DLT): Enables secure, transparent, and tamper-proof record-keeping, reducing reliance on human intervention. Smart contracts automate trade settlements by reducing processing time to minutes, while asset tokenization improves accessibility and investment efficiency.

Key Challenges in the Fund Industry & How RAISE Solves Them

1. Data Fragmentation & Inefficiency

Data fragmentation poses significant challenges in the fund industry. For instance, it can complicate the generation of accurate reports for regulators, which increases the risk of non-compliance.

Real-time data integration is crucial for decision-making and operational efficiency. In fact, a study by Accenture found that 66% of asset managers are struggling with these data fragmentation challenges.

Additionally, a McKinsey report indicates that financial institutions could reduce operational expenses by up to 20% through better data integration and automation.

To address data fragmentation challenges, RAISE integrates fund administration, portfolio management, and investor relations into one unified ecosystem. 

For instance, with RAISE, you can automate workflows across the entire fund lifecycle. This includes investor onboarding, capital calls, portfolio monitoring, NAV calculations, compliance reporting, performance analytics, and seamless investor communications, all within one platform.

Additionally, the RAISE Connect mobile app gives you instant notifications and real-time updates. This lets you track investment performance and get important alerts while you are on the go. 

By providing real-time insights and automating complex processes, RAISE enables you to focus on strategic initiatives like investor satisfaction and less manual work.

2. Regulatory Compliance

The asset servicing industry operates in a highly regulated environment. Fund managers must comply with stringent data privacy laws, transparency, and precise reporting.

Asset management firms must also comply with the Environmental, Social, and Governance (ESG) reporting mandates and cross-border tax regulations.  The wide range of regulatory compliance demands extensive resources and can be quite time consuming.

A Deloitte survey highlights that nearly 50% of asset managers identify regulatory compliance and reporting as top industry challenges because of increasing compliance complexity.

Compliance challenges pose operational risks. A report by Forvis Mazars identifies regulatory compliance as a top risk for financial services in 2025. This means mitigation strategies for non-compliance risks are urgently needed in the fund industry.

Here are different ways RAISE addresses different regulatory compliance challenges:

  1. Automated Compliance Risk Assessment (CRA): RAISE’s CRA platform automates due diligence, Anti-Money Laundering (AML), and Know Your Customer (KYC) procedures, reducing manual intervention and minimizing errors.
  2. Workflow integration: RAISE takes a seamless, workflow-driven approach to compliance. It integrates smoothly with existing processes to ensure you manage and track compliance tasks efficiently.
  3. Investor classification: RAISE segments investors based on risk profiles and behaviours, facilitating tailored risk management strategies that align with regulatory standards.
  4. AI-driven document processing: Using AI, RAISE automatically extracts data from uploaded documents, populating necessary fields within compliance reports to reduce manual input and expedite processes.
  5. Global sanction checks: The platform integrates with third-party due diligence data platforms like Open Sanction. This allows for comprehensive global sanction checks to ensure compliance with international regulations.

Cybersecurity Risks in the Asset Servicing Industry

The asset servicing industry is increasingly vulnerable to cybersecurity threats. Financial services firms are 300 times more likely to be targeted by cyberattacks than other industries.

Additionally, the rapid advancement of generative AI has enabled cybercriminals to conduct sophisticated attacks, such as creating realistic scams and accessing sensitive data, posing significant concerns for financial institutions.

With RAISE, fund managers can effectively address cyber security threats. Here’s how:

  • • Advanced security measures: RAISE uses sophisticated security protocols to safeguard all investment transactions and personal information, ensuring data integrity and confidentiality.

  • • Cloud-based infrastructure: Using a cloud-based ecosystem, the platform offers scalability and flexibility. You can access data and tools from any location, which enhances operational resilience against cyber threats.

  • • Secure data management: RAISE upholds stringent data security standards. The platform protects sensitive information to ensure compliance with regulatory requirements and handle potential cybersecurity risks.

Why Adopt RAISE?

RAISE is not just a technological upgrade—it’s a strategic move to cut costs, boost investor trust, and stay ahead of regulations.

Here’s how RAISE can help you in asset fund management:

  • • Increased efficiency and reduced costs: McKinsey estimates that automation in fund administration can cut costs by 30-40%. RAISE helps you automate key processes such as NAV calculations, investor onboarding, and reporting, reducing manual effort and operational expenses.

  • • Improved data accuracy and risk management: Spreadsheet-based processes are prone to the risk of errors and compliance issues. RAISE ensures accuracy through AI-driven verification, predictive analytics, and real-time data reconciliation.

  • • Better compliance and regulatory adherence: With regulations such as AIFMD, SEC reporting, FATCA, and CRS, asset managers must ensure real-time compliance.

  • • A more pleasant investor experience: RAISE Connect offers a self-service portal, giving investors real-time access to fund performance and documents– helping you give a better experience.

  • • Faster reporting and increased transparency: RAISE gives you real-time performance reports and customizable dashboards, allowing you to have instant access to fund metrics.

Embrace the Future of Asset Servicing

Fund administration can be complex. It involves intricate accounting, compliance, reporting, and investor communications, all while adhering to changing regulations.

With AI-driven insights, you get seamless compliance features, streamlined operations, and fewer errors. Whether you’re dealing with private equity, venture capital, or real estate funds, RAISE makes fund administration less complex and efficient.

Book a call now and let RAISE transform your asset servicing today.

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