A new report from RBS International reveals that more than 7 in 10 alternative investment funds identify digital transformation as their single greatest operational challenge.
This finding highlights the urgent need for industry-wide collaboration and support as funds navigate the rapidly evolving landscape of next-generation technologies.
The report, based on a survey of 100 alternative investment funds, underscores that while digital technology is seen as the key to meeting automation, compliance, and cybersecurity objectives, the path forward presents a range of obstacles. Funds see productivity gains in AI and security benefits in blockchain and tokenisation, yet respondents identified regulatory uncertainty (71%), privacy and security concerns (50%), and a lack of industry consensus on platforms and standards (61%), as top barriers to innovation.
The report also found that:
- 79% of funds say cybersecurity risks are slowing their investment in innovation
- 97% agree that overcoming digital innovation barriers will require collaboration between funds, service providers, and regulators
- 56% plan to increasingly co-source fund administration in the future
Neil Walker (pictured), Head of Institutional Banking at RBS International, said: “Amid a wave of digital innovation sweeping through the sector, the race is on to secure value from next-generation technologies. We believe industry collaboration offers the best hope of moving forward with confidence – enabling funds to capitalise on the opportunities of innovation while managing evolving risk.
“Everyone has a role to play in that journey and our goal is to encourage dialogue, support joint problem-solving, and strengthen relationships across the value chain.”
