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Home FinTech Industry Automation Rates for Cross-border Fund Orders Stable at Nearly 91%

Industry Automation Rates for Cross-border Fund Orders Stable at Nearly 91%

New report from EFAMA and SWIFT highlights the evolution of automation and standardization rates of fund orders during the first half of 2019

  • The total order volume of cross-border funds increased by 6.3% to 19.9 million orders in the first half of 2019, from 18.7 million orders in the second half of 2018.
  • The total automation rate of processed orders of cross-border funds remained stable at 90.6% in the first half of 2019. The use of ISO messaging standards rose from 58% in Q4 2018 to 62.3% in Q2 2019, while the use of proprietary file transfer protocols (ftp) decreased to 28.3% in Q2 2019, compared to 32.4% in Q4 2018.
  • The total automation rate of orders processed by Luxembourg TAs remained stable at 89.1%. The ISO automation rate increased from 72.2% in Q4 2018 to 73.7% in Q2 2019, while the use of proprietary Fund Transfer Pricing (FTP) dropped from 16.8% to 15.4% during the same period.
  • The total automation rate of orders processed by Irish TAs increased from 92.8% in Q4 2018 to 93.5% in Q2 2019. The ISO automation rate increased from 34.7% to 40.4% during the same period, whereas the use of proprietary FTP went down from 58.1% to 53.1%.

Janice E.Chapman, Manager, Investment Funds, Standards, SWIFT, added that, “In line with the increased volume of fund orders reported across the Luxembourg and Ireland transfer agents and the increased adoption of ISO 20022 messaging standards, we see a welcome increase in funds order volumes on SWIFT, which again ratifies the general trend of the automation of the funds business.”

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