Today, banks and financial institutions are increasingly faced with the need to use cloud technologies. And if some make it a priority to save on hardware and get rid of routine tasks, others want to get a reliable solution with the ability to meet modern standards. So, what are the data room benefits for investing industry?
Data room software – digital approach to investing industry activities
Today information technologies play one of the key roles in business efficiency. Cloud technologies, which are rapidly being introduced into the corporate IT environment, make it possible to respond most quickly to market changes. Due to their advantages, clouds are one of the fastest growing areas of the IT market.
The investment banking business is most actively involved in using virtual technologies. Cloud computing solutions in the investing industry have been known for a long time. But only after the implementation of several successful projects (for example, Salesforce) using the concept of “software as a service” (SaaS) did they gradually become more widespread. Today, data rooms for financial institutions are used in areas such as sales management, marketing, customer service, and management of specific financial applications.
The issue of security plays one of the main roles in the work of any bank. The data room presents a digital platform that contains all necessary tools for secure virtual collaboration and control of business data flows. In addition, the data room vendor ensures the provision of services following the service level agreement (SLA), which does not always provide the level of computing security and data confidentiality required by financial institutions.
How to organize an investment project in a data room?
The data room software as an investment project management system automates the processes of planning, coordinating, and monitoring the budgets of investment projects and portfolios, consolidating accounting data, and analyzing information in real-time. The data room is the basis for organizing the project structure of budgetary funds accounting and is focused on the investment planning departments of geographically distributed companies and holdings, which are characterized by multi-stage procedures for coordinating applications for financing and cost accounting in several sections at once (by divisions, business directions, projects).
A data room can be defined as a platform in the register of domestic software that allows you to holistically build the processes of investment and project activities, consider them as a whole and provide the necessary data protection. Automation of the full cycle of investment project management on the virtual data room platform includes:
- Preparation of an investment project;
- Formation of the investment program;
- Execution optimization;
- Construction management;
- Monitoring of target indicators for the life cycle of an object;
- The strict control of readiness and payments to contractors;
- Decision support system for top management;
- Consolidated system for calculating, recording, and monitoring target indicators.
The data room accompanies the process of investment activity in terms of collecting and verifying investment applications, holding investment committees, forming an investment program (as well as its further adjustment) with subsequent monitoring of the implementation of investment projects and the formation of analytical reports.
The hallmark of a virtual data room organization is the deliberate blurring of its boundaries. The software allows investment companies to connect counterparties (suppliers, intermediaries, buyers) in such complex schemes and chains that it is sometimes difficult to say where one transaction ends and another begins. On the one hand, it creates certain difficulties, but on the other hand, it increases the involvement of the participants in the process and requires them to be more responsible for their actions.