Transforming the Trading Experience

October 23, 2024

The hedge fund industry is undergoing a major transformation with the emergence of the self-service model. This shift signifies a broader transition from personalized, high-touch services to more adaptable, client-driven solutions. But what does self-service really mean in this context?  Hedgeweek spoke to Win Franke, Head of North American Business Development at Neovest, a wholly owned subsidiary of JPMorgan Chase & Co, to learn more…

HW: What do we mean by self-service? 

To us, self-service means providing clients the independence to self-configure the platform. This increases flexibility and efficiency, which are crucial to our clients. Just as in everyday life, clients increasingly prefer using technology to meet their needs rather than relying on emails or phone calls to contact representatives. 

HW: Why is self-service so important?  

The self-service model offers clients autonomy and operational efficiency. Hedge funds, which employ highly capable staff across all levels and functions, benefit significantly from user-friendly tools that empower their teams to maintain and manage evolving workflows. This capability becomes a distinguishing factor for a technology platform. For example, the Neovest platform provides the tools for a hedge fund to maintain, manage and update their pre-trade controls, configure alerts as they deem necessary, and generate post-trade audit trails, various reports. Similarly, for a hedge fund’s operations group covering a range of asset classes, the Neovest platform offers tools that enable the operations team to create default templates and easily add new ones as their asset classes expand. 

HW: Who is your typical client? 

A good percentage of our client base is comprised of multi-strategy and macro hedge funds. The Neovest platform can accommodate a wide variety of strategies and asset types. As investment strategies evolve in response to macroeconomic conditions, Neovest provides hedge funds with the tools to adapt to these changes. Neovest has clients who started with a macro approach and later transitioned to a multi-strategy model, with our platform evolving alongside them to meet their changing technological needs. 

HW: Is self-service as important for small emerging firms as it is for larger ones? 

We have worked with start-ups that seek full control to operate on their own schedule and minimize external reliance. Conversely,  we have worked with others that operate with such lean teams that they prefer to rely on vendor support. In our experience, however, start-up hedge funds tend to prefer a single software solution rather than managing multiple third-party vendors.  

HW: What tools does your self-service platform provide clients? 

The self-service tools available to our clients are the same tools leveraged by the Neovest support team. This enhances the client experience by allowing our support team the agility to respond to queries quickly and train clients more effectively towards greater self-sufficiency. The platform is designed to empower the end user. From simple features like calculated columns to more complex allocation logic and managing pre- and post-trade rules engine, users can self-service across these components.  While we prioritize self-service across the entire platform, Neovest also offers 24/6 global support.   

HW: What challenges might hedge funds face when transitioning to a self-service model? 

Transitioning to any platform can come with various hurdles.  Our clients have told us that our platform documentation, how-to guides, and videos greatly assist in transitioning to using the tools independently.   We prioritize optionality over an all-or-nothing approach, which also helps with the transition process.  In assisting clients with their transition to a self-service model, we notice that clients more often adopt self-service  tools associated with tasks that they perform regularly.  For less frequent tasks, such as quarterly reporting, we may still receive support queries.   

HW: Is self-service here to stay? 

Absolutely. The rise of the self-service model in hedge funds marks a significant evolution in the industry. By providing greater control and flexibility, this approach meets the changing expectations and operational demands of clients.

Win Franke, Head of North American Business Development, Neovest

If you would like to see the original article, please visit: https://www.hedgeweek.com/the-growing-trend-of-the-self-service-model/