SWIFT-APAC_Funds_Processing_Automation_and_Standardisation_Report_14页_779kb

APAC Funds Processing Automation and Standardisation Report Summary (H1 2019)

Core Content

This report provides an analysis of the automation and standardisation rates of fund orders in the Asia Pacific region, specifically focusing on Hong Kong, Taiwan, and Singapore. It highlights the progress made by these markets towards more efficient and standardised fund processing systems, with a particular emphasis on the adoption of ISO 20022 messaging standards and proprietary FTPs. The report is part of an ongoing initiative by SWIFT and its partners to track and improve operational efficiency in the funds processing space.

Main Objective

• To provide periodic information on the progress of automation and standardisation in key APAC fund processing markets.
• To support industry players, asset managers, regulators, and stakeholders in understanding trends and making informed decisions.
• To track the adoption of ISO 20022 standards and proprietary formats across the region.

Key Markets and Data

1. Survey Coverage

• Total TAs surveyed: 21 (9 in Hong Kong, 7 in Taiwan, 5 in Singapore)
• Total orders processed in H1 2019: 3.8 million
• Manual orders processed in H1 2019: 0.7 million

2. Automation and Standardisation Rates

3. Regional Breakdown

Hong Kong

• Orders processed in H1 2019: 1.8 million
• Automation rate: 73.5% (up from 63.8% in Q4 2018)
• ISO automation rate: 38.9% (up from 27.2% in Q4 2018)
• Proprietary FTP rate: 34.6% (down from 36.5% in Q4 2018)
• Manual order rate: 26.5% (down from 36.2% in Q4 2018)

Taiwan

• Orders processed in H1 2019: 1.8 million
• Automation rate: 90.8% (up from 84.1% in Q4 2018)
• ISO automation rate: 32.5% (down from 42.6% in Q4 2018)
• Proprietary FTP rate: 58.3% (up from 41.5% in Q4 2018)
• Manual order rate: 9.2% (down from 15.9% in Q4 2018)

Singapore

• Orders processed in H1 2019: 0.22 million
• Automation rate: 72% (down from 83.8% in Q4 2018)
• ISO automation rate: 50.3% (up from 22.1% in Q4 2018)
• Proprietary FTP rate: 21.7% (down from 61.7% in Q4 2018)
• Manual order rate: 28% (up from 16.2% in Q4 2018)

Main Viewpoints

• Automation Trends: The overall automation rate in the APAC region increased from 75.5% in Q4 2018 to 81.5% in Q2 2019, indicating positive progress in reducing manual intervention.
• ISO Adoption: The use of ISO messaging standards saw an increase in all three markets, though the growth was more pronounced in Singapore, where it rose from 22.1% to 50.3%.
• Proprietary Formats: While proprietary FTPs increased in Taiwan, they decreased in Hong Kong and Singapore, suggesting a shift towards more standardised solutions.
• Manual Processing: Manual processing decreased in Hong Kong and Taiwan, but increased in Singapore, highlighting varying levels of automation maturity across the region.

Key Information

• The report is published bi-annually by SWIFT and its partners.
• The next report is planned for Q2 2020 and will cover the period from July 2017 to December 2019.
• The data is collected from transfer agents in Hong Kong, Taiwan, and Singapore, representing both domestic and cross-border fund orders.
• The report is supported by the Asia Funds Automation Consortium (AFAC), the Hong Kong Investment Funds Association (HKIFA), and the Association of the Luxembourg Fund Industry (ALFI).

Conclusion

The APAC region is making steady progress in the automation and standardisation of fund orders, with a notable increase in the use of ISO messaging standards and a decrease in manual processing. While all three markets—Hong Kong, Taiwan, and Singapore—show improvement, Singapore's automation rate decreased slightly, indicating a need for further focus on automation in that market. The report underscores the importance of harmonising financial standards and operational practices to enhance efficiency and reduce risks in the funds processing industry.