According to new research from Intertrust, private equity firms are acutely aware of the impact digital innovation will have on their sector, particularly in the areas of artificial intelligence (AI) and blockchain.
Over 90 per cent believe AI is likely to have the biggest transformational impact on the sector. This is almost a fifth higher than the industry average of 77 per cent. Over a third (37 per cent) of respondents to the survey said that blockchain, AI and robotics are already being adopted in the industry and will become more widespread in the near future.
Some 56 per cent of respondents believe digital innovation is currently having the biggest impact on the back office, by generating greater operational efficiencies. 37 per cent say innovative technology is also being deployed to speed up the due diligence process when completing transactions.
Michael Johnson, Director of Fund Services, Intertrust, says: “The findings of our survey reflect growing levels of interest in using AI for handling large volumes of investor queries more efficiently by recognising questions being asked and recommending responses. This will also introduce more standardised responses, further reducing risk. Additionally, there is likely to be an emerging desire for firms to favour the use of blockchain for KYC-related activities.”
“Over the next five years there is set to be huge demand for new Regtech solutions, which is recognised by nearly half of all respondents. New Regtech solutions bring previously unforeseen levels of automation to the regulatory compliance process, including reporting and monitoring. Often provided as a software as a service (SaaS) model, Regtech solutions are designed to boost transparency and support compliance with regulation such as KYC.”
