United Kingdom’s recent announcement of the road map, leading out of the lockdown days, has made a promise to deliver the land of normality. To disrupt this, the COVID-19 seems to be continuing to shake the mature economies in every corner of the world and still has not received the memo we suppose. Still, the life is trundling on and the finance experts are yet to figure out a new way to ensure that they can secure a return on their investments, without having to sacrifice their support towards the ethical growth of the global deeds.
However, frontier and developing markets are set to outperform their developed counterparts in 2021, for all the disruption of the pandemic. Considering the volatility of economies around the world, it is to be expected that it serves as a prime opportunity for investors. And to this opportunities , the developing markets brings a certain kind of added risk. It seems to very clear that currently there aren’t enough tools for the fund managers to invest in the developing countries. Although, as an alternative, there might be a chance that updating the existing tools to stand against these volatile changing market conditions might be too much time consuming to be considering viable by the investment firms. The challenges like these are withholding many economies from reaching their potential. The hedge funds, instead, are facing a variety of high investment barriers while reaching these developing markets. The facts that legacy financial software platforms and consultants have merely neglected the supply of solutions are led in no small parts.
On a brighter side, considering it fortune, not all is lost and there is still a world of technology and tools out there to help overcome these barriers.
Let’s uncover few of the key barriers and to know certain essential and effective means to overcome them and help the investors to better navigate the opportunities that these developing markets have to offer. One of the primary barrier is facing the fund managers, data or relatively a lack of data in relation to developing markets is one. In this digital age, data has become one of the world’s most valued raw materials and resources in business. The scarcity of this commodity for frontier markets possess rather a unique challenge. Other issues which include the lack of environmental, social and corporate governance reporting, with a disaster as it is to enable compliance on European Market Infrastructure Regulation (EMIR) and submitting it requirements set by the European Securities and Markets Authority (ESMA). When combined, these factors can lead to a huge blind gaps which increases the risk when the fund managers look for the best sector to invest. This is only amplified by the political turmoil and the rigid opacity these nation’s financial systems have. Since legacy systems are thorn in the side of financial markets, some have been retained despite the inefficiency increased security risks and incompatibility with new technologies they possess as they are difficult to do without. Legacy systems can also be extremely costly and time intense to replace and it makes this option way less attractive. To provide a solution, in response, low-code should address the needs of fund managers and funds with capability to plan or build in inclusive functionality and specialized reporting tools that can outgrow investment in a growing multibillion-dollar market. As a result, both fund managers and developing countries have already been aided from its creation, with its enticing capital for the emerging economies.
