Alternative Investment Exchange (AIX), an alternative investment technology firm, has developed a direct data connection with UMB Fund Services, a registered and alternative investment fund administration firm, that enables AIX to digitally transmit subscriptions and new accounts without manual intervention and reliance on paper-based processes.
“Alternative investments have always required a high degree of manual intervention. Paper documents, wet signatures, and PDF documents that must be re-keyed made it especially challenging to automate processes such as opening accounts and onboarding new customers,” said AIX’s chief operations officer, Brad West. “With true digital, straight-through processing, AIX can move data seamlessly to UMB, minimizing NIGOs, reducing its administrative headaches, and eliminating unnecessary back-office costs.”
AIX noted that during the height of the pandemic and despite quarantine orders, many fund administrators were forced to keep offices open so that redemption requests could be processed, and compliance requirements were met. “This underscored the inefficiencies of paper, and the liability risk for having business processes tied to such antiquated practices,” the company said.
“The pandemic accelerated our path in leveraging technology to automate our business, create efficiencies, and address risk and liability issues tied to paper and manual processes. Our vision, which has been realized by integrating with AIX, was to automate the subscription, maintenance, transfer, and redemption processes of alternative investments” said Mike Huisman, senior vice president and director of transfer agency at UMB Fund Services.
Alternative Investment Exchange is an end-to-end digital platform that claims to improve the processes related to buying, owning, and selling alternative investments.