Armundia Luxembourg, a techfin company specialising in innovative platforms for the banking, insurance and financial industries, launches FundWatch, an innovative vertical module designed specifically for Depositary Banks managing Alternative Investment Funds. FundWatch is the first end-to-end integrated solution that centralises in a single platform what depositary banks currently manage across fragmented systems: master data, transactions, regulatory controls and document management. The platform enables real-time dashboards, automates multi-source controls and reduces manual activities that burden operational teams.

Luxembourg depositaries managing Alternative Investment Funds face mounting operational pressure. Assets under custody are growing rapidly—depositary assets in Luxembourg increased from $17 billion in 2018 to $100 billion in 2024—whilst regulatory expectations continue to intensify. The CSSF and ESMA now require depositaries to verify ESG investment restrictions, strengthen oversight of illiquid asset valuations and maintain comprehensive audit trails across increasingly complex fund structures spanning private equity, real estate, debt and OTC derivatives. At the same time, depositaries must manage this expanded scope whilst working across fragmented systems that separate master data, transaction processing and documentation. Core custody services are perceived as commoditised, placing pressure on margins precisely when operational demands are at their peak. FundWatch addresses this reality by consolidating fragmented processes into a single platform with automated controls and complete traceability.

"FundWatch stems from direct experience with depositary banks managing Alternative Investment Funds" states Paolo Maceratesi, CEO of Armundia Luxembourg. "The requirements were clear: fewer low-value manual activities, improved data quality, demonstrable controls for supervisory authorities. The platform responds by automating what is currently manual, integrating what is currently fragmented, and making traceable what is currently opaque. The result: streamlined processes, reduced operational risk and measurable cost containment".

Proven and Measurable Results

Armundia presents documented data. A Luxembourg depositary bank measured results after two months of implementation:

• 40% reduction in onboarding time

• 65% reduction in email usage for operational activities

• 50% reduction in document management time

• 90% reduction in manual errors in controls

• 50% improvement in audit effectiveness through real-time audit trails

• Overall 50% reduction in operational time and effort

These results demonstrate how consolidating fragmented processes into a single integrated platform directly impacts operational efficiency, risk management and cost control for depositary banks.

Comprehensive Coverage of Alternative Investment Funds

FundWatch covers the entire operational process for Alternative Funds with complete support for all asset classes: private equity, real estate, funds, debt, OTC derivatives. The platform manages master data, transaction traceability, automated regulatory controls and centralised documentation. Dedicated dashboards guide control teams through exceptions with structured workflows.

The key differentiator versus traditional solutions is data integration. Where depositary banks currently work across separate systems for master data, transactions and documents, FundWatch centralises everything in a single environment. Distinctive functionality: the document suggestion system indicates in real time which documents are required for each workflow step, eliminating errors from missing or incomplete documentation.

The platform automatically generates dynamic reports for compliance (checklists, organisation charts, bank confirmations) and adapts immediately to new regulations.

A Modular Approach to Fund Management

Armundia FundWatch is the first vertical module of 3SIXTY FUNDS, Armundia's modular platform built to cover the entire value chain of fund management. The framework addresses the growing operational and regulatory complexity that financial institutions face in fund management, offering vertical modules for depositary banks, transfer agents, fund administrators, AIFMs and investment managers.

The 3SIXTY FUNDS platform is built on a modular and interoperable architecture that enables institutions to activate specific functionalities based on their operational priorities. Each module can operate in stand-alone mode or integrate with legacy systems, core banking platforms and external data providers, adapting to evolving volumes and requirements.

The solution is available both on-premise and in the cloud and adapts to standard or bespoke banking ecosystems, supporting business evolution in a gradual and controlled manner.