Driving digital success: How fund administrators accelerate adoption

This article was originally published by Private Debt International (BNP Paribas on driving digital success – how fund administrators accelerate adoption)

Where are we seeing the use of Artificial Intelligence (AI) in the private capital industry, and how is the industry coping with the need for digitalisation?

What are the challenges for leveraging AI in private capital, and how can efficient operational integration and top-notch data quality be ensured?

• Rising AI demand – the highest demand is coming from asset owners and secondary funds of funds seeking to utilise AI for automated collection and processing of large data sets; this demand will grow as the secondary market expands. Additionally, General Partners (GPs) and service providers are exploring how best to leverage AI
• Fully integrated platforms – a core issue for managers is ensuring data quality. To mitigate these concerns and assist managers with technological integration, fully integrated platforms provide significant benefits. Our globally integrated platform connects all the bank’s “satellite” functions, delivering a consistent, cohesive service across the business
• Digital interfaces – there is a growing need for GPs to offer digital portals that streamline communication with investors, while service providers also need to secure channels to interact with their GP clients. To that end, CapLink Private combines advanced reporting and end-to-end workflows to give real‑time visibility, enhanced control, and secure communication for all stakeholders
• Fragmentation, Adoption, and Collection – three core challenges regarding leveraging AI; continued reliance of the private-capital sector on unstructured and fragmented data sources, the industry-wide challenge of simply obtaining the necessary data, and the transformation of raw data into AI-ready formats
• Globally integrated platform with pre‑eminent expertise – ensuring data quality occurs through single‑point data entry (a key differentiator of our platform) which reduces the risk of errors and duplication, automated controls and real‑time monitoring to protect the entire data journey, all backed by experience and expertise.
• Different tools serve different purposes; the right mix is essential – combining Robotic Process Automation (RPA), Optical Character Recognition (OCR), Machine-learning (ML), and generative AI to drive efficiency and predictive analysis.