A new Aite Group report claims firms are spending more than ever to automate corporate actions by investing in technology and processes.
According to the report, firms are spending more on corporate actions processing solutions to avoid costly processing mistakes at the outset, spending $70 million in 2010 and likely up to $93 million in 2015 on the solutions.
Previously, according the report, firms allocated capital to settle for losses caused by corporate actions processing mistakes after the errors occurred, with the emerging trend representing a shift in strategy from the defense to the offense.
Growth in the corporate actions processing marketplace will be driven by a continued focus on risk management and trading optimization, says Fritz McCormick, senior analyst with Aite Group and author of the report. Addressing issues with corporate actions processing has been an ongoing effort for the past decade. Third-party solutions are evolving to address a larger portion of this problem, and helping the industry make progress.