Empaxis was named a middle-office outsourcing 'major player' in a report from DataBridge Market Research, Global Middle Office Outsourcing Market – Industry Trends and Forecast to 2029.
The report extensively covers the industry, including recent developments, growth opportunities, and top outsourcing service providers, among other topics.
While the report provides a great deal of industry insight, we will focus specifically how Empaxis relates to other service providers.
In addition to Empaxis, here are some other providers mentioned:
If you’re an investment firm planning to outsource or switch vendors, there are different factors you’ll consider.
Based on those factors, we’ll share how we stack up relative to the rest.
Trade settlement, confirms processing, T+1 reporting, P&L reporting, performance and attribution, billing...
All the larger middle-office providers in the DataBridge report will have the capabilities to perform said tasks, and perhaps more. Just like Empaxis.
The providers may excel in certain areas, including their use of technology, but the key differentiator is customization.
And the reality is that many vendors offer a standardized set of services, but with limited customization options.
Another consideration is they might do the work, but according to their approaches, not yours.
Additionally, they might lack expertise and building the necessary workarounds for certain asset classes and transaction types.
And this is where Empaxis is different.
Not only do we perform all middle-office related activities, we are flexible in our approach, allowing firms to pay for the specific services they need and in the way they need them done.
Empaxis prides itself in being systems-agnostic. That means we work with any systems you’re using.
So whether it’s an Axys or APX, a Black Diamond or an Addepar, a Tamarac or Orion, or anything else, it’s no problem. With 20+ years in business, we have experience with all these portfolio accounting systems and related software.
And when it comes to actually doing the work, Empaxis does so in the way that the investment firm needs it done. Dashboards, reporting, and data point customization, formatting requirements, security master file naming conventions…
What’s more, we do this all in the client’s environment, where they maintain full control, and allow the provider access only to what needs to be accessed.
For many of the large providers, servicing middle offices (or back offices) is just one of many things they do.
While they have talented enough people for the job, investment operations might not be their core strength.
Additionally, if the vendors have larger clients that bring in more revenue, the vendors could consider those clients "more important" than others, even if they’ll never say it.
Their preferred clients will get the A-Team, and if you aren't quite as big of a deal size as they want, there’s a chance you’ll get the B-Team.
At Empaxis, operations has been our sole focus since Day 1. You can imagine after two decades exclusively in the space, we've built up a level of expertise unmatched and hard to find in other places.
Our resources are entirely to devoted to operations, trained and well versed in capital markets, so you will always get our best.
One approach you'll find with larger investment management outsourcing providers is that they typically charge on basis points, or a percentage of assets managed.
Empaxis does not do that.
Flexible working arrangements require flexible pricing models, and our pricing is based on volume and complexity of the work, combined with an appropriate amount of hours to get it done.
The workloads are the same for us no matter how well the markets perform. You won't be penalized by paying more when your assets perform well.
Likewise, when markets are down, paying less to the provider is risky business, for them and you. Unpredictable and decreased cashflows threaten their financial stability, which may affect their ability to serve you at the highest level.
Investment firms should expect their middle-office services provider to be at the forefront of cutting-edge technology, including AI.
Most if not all of the major players are investing heavily in machine learning and automated tools, though the effectiveness in implementing and integrating those solutions vary widely.
At Empaxis, we too understand the need to stay ahead of the curve when it comes to technology, as we effectively leverage machine learning and intelligent automation/RPA into our processes.
We also support firms with systems implementation and product engineering resources.
Check out our Automation Guide for RIAs. See up to 20 workflows Empaxis can automate for you.
If you're looking to outsource on a large scale, you might think about the likes of Northern Trust, State Street, or SS&C.
Empaxis may not be quite as big, though we are growing fast, and we are equally capable of providing the breadth and quality of service you'd expect from a large provider.
We already work with some of the largest investment firms, banks, and financial institutions around the world. Size is a non-issue when looking at Empaxis.
In fact, we see ourselves in a sweet spot: big enough to serve you, but small enough to where you are more than just a number to us.
Every large provider has a global presence, including Empaxis.
From Day 1, we've been a global organization.
It was the plan all along, and from a client servicing and delivery standpoint, everyone benefits.
We are strategically located in the US, UK, India, and China (Hong Kong), covering all time zones.
Whether you're an asset manager in New York, a wealth manager in London, or a family office in Singapore, we have you covered at all times (24/7).
Middle-office outsourcing providers often face challenges with employee retention, with average employee tenure 1-2 years.
This often lead to inconsistent service quality, knowledge gaps, and the need for frequent retraining of new staff.
While other vendors do what they can to mitigate the risks, and Empaxis enjoys employee tenures significantly higher than industry averages (3-4+ years), which translates to a more experienced and knowledgeable team, greater consistency in service delivery, and a deeper understanding of your firm's specific needs.
We also invest in robust training programs to ensure our team members are equipped with the latest skills and industry knowledge.
When it comes to outsourcing, investment firms (especially larger ones) have strict requirements around compliance and protecting their clients’ sensitive data, and they expect the provider to meet those demands.
All the major providers can and should meet those requirements.
Expect no less from Empaxis. We maintain a robust security posture with multi-layered safeguards, proactive monitoring, and strict adherence to industry best practices.
We are audited by Ernst & Young, ISO certified and SOC compliant, and our compliance credentials pass muster with all the major banks and institutions.
And our team possesses deep expertise in financial regulations and compliance standards, ensuring your data remains secure and your operations remain compliant.
While the major providers establish protocols, too often the communication falls short of clients’ expectations.
Slow response times, limited communication channels, tight windows of availability, and lack of initiating outreach are more common than some would like to admit, hurting an otherwise fruitful relationship.
At Empaxis, we know that good communication is the cornerstone of a productive and satisfying partnership.
That means establishing hours of availability around client’s schedule, allowing for timelier responsea.
We also offer multiple communication channels (phone, messaging, email, ticketing system) and primary points of contact in the form of dedicated relationship managers.
Regularly scheduled calls are set up to share progress reports and exchange feedback.
Among the 'major player' middle-office outsourcing providers, it's not so much about finding the best one for your firm. It's about finding the right one.
All the providers, regardless of size and location, made it into the DataBridge report because they are capable and qualified in their own right, but some are more suited for your firm than others.
And some of those providers, like Empaxis, have more than meets the eye.
Larger providers, like Northern Trust, SS&C, and State Street, have their strengths and selling points. Empaxis has equal capabilities and credentials, with its own standout qualities:
1. Highly flexible services and a singular, proactive approach
2. A pricing model that works in your favor
3. We are not too big to where you're just a number, but more than big enough to take on high-volume operational workloads
4. Leaders in technology
5. Fully complaint and transparent
6. Global, 24/7 coverage
7. Clear communication protocols and channels
8. A team of middle-office experts who work directly for Empaxis, assigned and dedicated to serving you.
As more and more investment firms make outsourcing an integral component of their operating model, finding the right provider is everything. Empaxis is ready to be that partner.
Our monthly newsletter features helpful resources, articles, and best practices to implement within technology providers and investment firms
