Are you tired of dealing with software that feels more like a roadblock than a tool? Frustrated by constant reporting discrepancies, outdated interfaces, and the inability to access or reconcile your data efficiently? Whether you're a General Partner (GP) or a Fund Administrator, the tools you rely on for fund accounting, reporting, investor relations, and portal management can make or break your operations. Unfortunately, the legacy software many firms still use - once considered cutting-edge - hasn't kept pace with the rapid advancements in the financial sector. Instead of empowering you, it's holding you back, creating inefficiencies and hindering your ability to serve your investors effectively.

Some legacy software providers tried to change their solutions to appear a bit more modern. They moved their platforms to the cloud and even gave their user interface a facelift.

However, it didn’t fundamentally improve the way they operate - it simply masked outdated systems.

These old, outdated solutions still hinder efficiency and growth.

For years, private capital industry has struggled to keep up with the rapid changes in the financial sector.

But now, a new wave of emerging SaaS (software as a service) vendors like Entrilia is offering a lifeline, providing agile, scalable solutions that address these persistent issues and truly change the game.

Basics

When thinking about this arguable topic, the lifecycle of a company is the first thing that comes to mind.

When a company is in its growth stage, the product changes rapidly to draft more attention, generate more leads, gain more customers, and, of course, establish its name. The company is growing quickly, and the capabilities of the product - in our case, software - are also expanding, providing new and innovative features.

Speaking of innovations, the teams behind new software are more flexible and responsive to the latest technological trends. They are eager to incorporate these latest trends into their products

In contrast, old software is at its maturity stage. Their name is already well-known, and the business is stable, so there’s no pressing need to create something innovative. It has already reached its full potential.

Additionally, older software companies are often afraid of changes and updates. Their legacy code isn’t flexible enough, so changes are really difficult to implement. Also, technical debt can become a significant issue. If you’re unfamiliar with technical debt, you can click here to learn more about it.

Score one for emerging SaaS.

The next basic thing to consider is the role of founders.

Founders play a vital role in shaping the long-term success of the company, particularly in software development.

They have a clear understanding of the issues they wanted to solve when they created the company. Their deep personal connection drives a never-ending flow of innovative ideas. Unlike executives at legacy software firms, founders are often more committed to continuous innovation, constantly pushing the boundaries of what's possible to deliver a superior product.

They wake up thinking about how to improve their solutions and continue thinking about it even as they sleep.

One more point for emerging SaaS

Client Side

One of the biggest advantage of leveraging new SaaS solutions like Entrilia is that you can actually influence the updates and their priority.

In well-established companies, account managers often have less influence over product decisions compared to the professional services teams or product managers at emerging vendors. In contrast, with a new solution, there's a better chance that your feedback will be considered. This allows you to help guide the product's development so that it better aligns with your specific needs, while still fitting within the company's overall vision.

Old vendors have so many clients that they physically cannot listen to everyone. Requests for new features can simply get lost among dozens of other requests. And even if the vendors decide to fulfill your request, the long chain of communications will make everything really slow.

Add another win for emerging SaaS.

Actually, in terms of client support, emerging firms also win. Let me explain why.

New vendors often prioritize building strong relationships with their clients. As I already mentioned, they work to establish their brand name, so they strive to provide the best support possible.

I am not saying that older software companies are bad at client support, but their support teams don’t feel the same pressure and stress, and the need to prove themselves.

Another tally for emerging SaaS.

Other Differentiators

We are halfway through the post and here comes another bunch of important differentiators.

Though these factors appear later, that doesn’t mean that their value is also lower. In fact, their significance is just as high as the points we’ve discussed earlier.

Security is a must-have for fund administration software because it poses the biggest risk.

Software like Entrilia keeps highly secure, sensitive data such as investor information, financial transactions, compliance documentation, and more. And it can be a disaster if some leakages or cyberattacks happen.

Outdated technology often lacks the modern encryption and security protections that are standard in newer systems, making it more vulnerable for data breaches, especially when old on-premise tech is moved to cloud virtual machines.

Let’s score two more points for emerging SaaS, as this aspect is highly important.

New software is created on the basis of modern technologies, so it is easier to integrate with other modern tools and platforms.

While older software, which was built on outdated technologies, may no longer fit within the modern software landscape, negatively impacting business processes.

Furthermore, older systems struggle to keep up with modern advancement, as they lack the capacity for next-generation capabilities like AI Copilots and chatbots.

Emerging SaaS gains another advantage.

Unlike larger, more established companies, new vendors are not bogged down by legacy systems and bureaucratic processes. Their solutions are more flexible and much easier to modify.

Another victory for emerging SaaS.

People who designed the software decades ago didn’t prioritize user experience (UX) and user interface (UI) design. This niche became popular not so many years ago, yet it has an incredible effect on productivity.

New software typically incorporates the latest UI and UX design principles, making it more intuitive and easier to use.

To explore the impact of ux & ui design on performance, you can read our previous blog post here.

Once again, emerging SaaS wins this one too.

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Adopting innovative solutions from emerging SaaS vendors can significantly differentiate your fund administration business in a competitive market. By leveraging advanced technology and customized features, you can enhance your service offerings, attract more clients, and boost your overall market position.

Moreover, using modern software can help attract new-generation software engineers who prefer working with cutting-edge tools and are often frustrated by outdated tech stacks.

Embracing these emerging technologies not only boosts efficiency and productivity but also positions your business as a forward-thinking leader in the industry.

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