Capital Markets Insights

6 Reasons for Implementing Software to Manage Your Private Placements

In modern business, every organization is feeling some sort of pressure to automate, digitize and optimize their internal processes. This push is forcing organizations to reinvent themselves, discover more efficient ways of doing business and profoundly disrupt the industry they operate in. This pressure exists due to the simple fact that those that fail to adopt a comprehensive strategy to tackle this challenge will find themselves trailing behind competitors that are able to be more agile and cost-effective.

Despite the high level of complexity that is built into the capital markets, this industry has up until now been reluctant to turn to digital solutions in order to simplify and streamline its many redundant, manual and paper based internal processes.

In the case of private placements specifically, the same complexity that organizations are looking to solve through technology is the likely reason for the somewhat slow pace of tech adoption in the industry. Software solutions capable of handling the online syndication of private placements need to be able to handle complicated and constantly-evolving securities laws as well as a broad spectrum of functionality requirements put forth by both investors and issuers. Most organizations that would benefit from having such a platform in most cases can’t set aside the resources necessary for a development project of that magnitude. For this Katipult has engineered a solution to offer financial institutions a way to bridge the gap between them and digitized operations.

Katipult’s white-label private placement software allows organizations to fully automate many of the previously manual and labor intensive processes on an all-in-one platform capable of managing the entire private placement process; without the need for costly in-house development projects.

Still with so many moving parts in a rapidly changing environment it is important for organizations looking to move their private placements online to understand what the main benefits of such an undertaking would be. So, with that in mind:


Here are the top ways private placement software can benefit your organization

1. Get Deals Done Faster

Low level of automation inevitably leads to excessive manual effort sunk in no value added tasks. Tasks such as validating data accuracy, generating forms, searching for filed documents or any number of similar tasks that divert your employees from their core responsibilities.

Implementing purpose-built software empowers your staff to accomplish more in a shorter time span by relieving them of or simplifying many administrative tasks. Time previously spent on these can now be focused on efforts that actively contribute to the success of individual employees and the success of the entire organization.

Streamlining the process of executing subscription agreements, processing investments and tracking deal status will dramatically increase the amount of deals your staff is able to simultaneously manage and execute.  

2. Standardize Business Practices and Reduce Human Error

Errors harm the performance of all organizations. Although a complete eradication of errors is impossible, organizations that make a conscious effort to adopt high performance standards and implement mechanisms to enforce them will certainly see a declining number of errors over time.

Private placements that have all of the underlying processes standardized and constantly performed following the same steps in the same sequence, stand a significantly lower risk of being hindered by human error. This standardization is achieved guiding all employees’ activities through a centralized platform that tracks details of all user input and relevant regulation that guides the interactions.

Having a robust platform that manages the entire deal process improves control, transparency and coordination. Providing your staff with a clear sense of structure eliminates ambiguity and confusion. By doing this you help employees achieve uniformity and better coordinate activities, both of which are important for error reduction.

3. Ensure Compliance

Today's dynamic financial markets require you to maintain your compliance in a rapidly changing environment. Financial institutions have no shortage of challenges: regulations vary by market, country, and asset class; all types of communications must be recorded, stored, and available for replay; and supervisory controls and conflicts must be managed effectively.

Online private placements platforms need to have integrated solutions to provide complete coverage across the global financial markets, by asset class, market, and regulatory jurisdiction. Platforms that take a serious approach to compliance ensure that you can stay compliant, competitive, and effective while lowering risk and the chances of reputational damage.

4. Reduce Costs

Streamlining business processes is an integral key to operating your organization efficiently. The more efficient the workflow process is, the more efficient your employees can be. By optimizing your day to day processes using a software platform, you can witness significant improvement in operational efficiency.

Long gone are the days when you have to print loads of paper and assign a clerk to transfer it to the next department. Everything is digital these days, and the workflow automation software will allow you to get work done with a minimal workforce. It is cost efficient as it reduces paperwork, the investment made in expanding the workforce and ensures there are no errors as all documents are processed digitally with maximum accuracy.

5. Improve Reporting

Gathering large amounts of data from different sources and generating useful reports is a time-consuming challenge. Online private placement platforms allow you to convert the data gathered by the system into useful reports, presented on interactive dashboards that are able to provide user-specific insights into information surrounding any particular segment of the business.

6. Enhance Customer Interactions

CRM capabilities of robust online platforms allow for comment and activity tracking, and delve more deeply into real-time customer behavior with customized reporting. This coupled with allowing your staff adequate time to build relationships and give every customer a sense of security, knowing that their interests will be properly taken care of while at the same will go a long way towards improving your bottom line.

Get Started Today

Are you looking to optimize the way your organization executes private placements? Visit our blog to find out more about topics such as regulation, common mistakes and best practices among others, or contact us today and see how the Katipult platform can improve your business.