5 reasons for a financial asset management system

As an asset manager in the renewable energy sector, I always have an overview of the financial performance of my portfolio. I have planned all commercial and administrative tasks, have all key figures to hand and know exactly which stakeholder, from banks and insurers to O&M service providers, what has been agreed with which channel.

But what happens when the portfolio grows significantly, when legal requirements increase or when business models change? What if I just want to create a report quickly, but need to access different data sources?

Then it can become complicated and time-consuming – even for organizational talents. This is why asset managers use programs or tools that support them in the daily management and monitoring of their financial assets – so-called Financial Asset Management Systems (FAMS). Such systems include a variety of functions, depending on how they are structured and what needs they are intended to fulfill.

Below we highlight five key reasons why a financial asset management system makes the work of a renewable energy asset manager easier:

1. make more informed decisions

A financial asset management system makes it possible to use real-time and historical data as well as forecasting models. This enables asset managers to make precise decisions: When does an investment start making a profit? When will the break-even point be reached? Can findings from old investments be transferred to new ones? By taking various scenarios and price developments into account, these questions can be answered quickly and validly. Integrated liquidity planning, which automatically and accurately allocates income and expenditure, also saves time and minimizes errors.

2. time savings and efficiency through automation

Routine tasks such as data entry, accounting, contract management or transaction processing can be automated by a financial asset management system. This saves asset managers time and avoids potential errors in manual tasks. No more overloaded Excel lists in which errors can creep in. Standardization of processes, evaluations and reporting also brings advantages, as various assets and portfolios can be better compared with each other. New employees can be trained more quickly, while the departure of individuals does not lead to a loss of knowledge.

3. scaling: growing with the tasks

With the growth of renewable energy and the increasing shortage of skilled workers, companies need to keep track of their growing portfolios. Financial asset management systems allow companies to grow and manage an ever-increasing portfolio. Many systems can be easily customized to meet the needs of individual or multiple asset managers. Success becomes scalable. 

Tasks can be created and assigned to individuals, simplifying communication with a variety of stakeholders such as technicians or service providers. This makes it easy for asset managers to monitor progress.

4. one tool for the entire financial asset management

FAMS offer a seamless integration of other applications and interfaces or even make them obsolete by directly providing a holistic solution. One tool for everything, instead of a multitude of programs with different interfaces, logins and authorizations. All contacts, forecasts and transactions are bundled in one place. 

An example: A contract for a portfolio with various photovoltaic systems is about to expire. The system sends me an automatic notification in good time. Reports for investors and other stakeholders are also generated automatically and sent via the system.

Contract management is key for asset managers: a large number of contracts (lease agreements, insurance contracts, maintenance contracts, management contracts, service contracts and others) are drawn up over the lifetime of an asset of 20 to 30 years. All of these documents must be monitored, extended or terminated. They also support decision-making regarding the transaction of new and existing assets. A financial asset management system provides the ideal documentation and management of contracts.

5. single source of truth: all important data in one place

If all information comes together in a financial asset management system as described above, it follows the single source of truth principle (SSOT). A central access point for all important data significantly minimizes potential sources of error. Without a single source of truth, it is very time-consuming for asset managers to move critical data back and forth between various tools and to detect errors in the first place. 

Conclusion

The advantages of a financial asset management system for asset managers are numerous and convincing. With such a tool, asset managers can not only make their workflows more efficient and smoother, but also significantly increase their overall performance. Thanks to the optimized processes and the clear overview of all relevant data and contracts, they are able to make faster and more informed decisions. This leads to significant time savings and a reduction in errors, which in turn raises customer satisfaction and service to a new level. A financial asset management system is therefore not just a tool, but a decisive factor for sustainable success and growth in the renewable energy sector.

Find out more about how meteocontrol supports and automates the central tasks of asset managers with its innovative financial asset management system “mc Assetpilot”. Discover the advantages and functions that optimize your workflows and increase your efficiency. You can find more information here: mc Assetpilot.