Oil market prices have surged this year, resulting in higher royalty payments. While this can mean increased revenue for corporate trust administrators, it can also lead to tougher conversations with clients. When fees are tied to a percentage of revenue, clients ask why they are paying more when the work required to administer their assets has not changed.
This dynamic creates a familiar cycle. Clients push for lower or flat fees as prices rise. When energy prices eventually come back down, organizations look for ways to protect profits after making fee concessions. Those efforts come at the expense of long-term client service.
Trust administrators must manage this pressure without compromising service. That means implementing new systems quickly without disruption, ensuring more predictable costs, and strengthening client communication.
How MineralWare Simplifies Mineral Management
SS&C MineralWare combines these capabilities in one streamlined platform, enabling trust administrators to manage the operational demands of a changing market.
Transition systems quickly. Trust administrators require data to flow immediately into the systems their teams already use, such as accounting platforms, reporting applications, and proprietary analysis tools.
MineralWare helps organizations accelerate new system implementation through pre-built integrations, API availability, and a flexible architecture that supports customization. This helps teams transition more efficiently and with less disruption.
Reduce vendors and costs. Revenue, production, and other information can quickly become expensive and complex to source, maintain, and reconcile, particularly as clients and assets grow.
MineralWare leverages its scale to provide competitive pricing on data and additional services. Trust administrators benefit from a single vendor and a more predictable cost structure as their business grows.
Demonstrate value with transparency. Without frequent, meaningful, and accessible touchpoints with clients, trust administrators will struggle to defend their fees.
MineralWare enables teams to generate and deliver reports, send automated emails and alerts, and provide a client portal. Administrators can tailor communications to individual client needs and proactively share information about royalty payments, account activity, and other details that matter. By making relevant information easier to access and share, trust administrators can proactively demonstrate the value of their services.
A Better Way Forward
Market volatility will persist, as will the expectations for trust administrators to deliver more value while managing costs. Successful organizations will find ways to scale their operations without letting service suffer.
The right technology enables this balance. By streamlining the day-to-day work of mineral management, trust administrators can spend less time managing processes and more time delivering the service and responsiveness their clients expect.
MineralWare helps trust administrators build a more efficient business that delivers consistent value throughout every stage of the market cycle.
Stay tuned for the next installment of our Simplifying Mineral Management series, where we’ll explore how another industry segment uses modern tools to improve efficiency and deliver greater value. New to the series? Catch up on Part One and Part Two.
To learn more about how SS&C MineralWare simplifies mineral management, call (817) 735-8195 or email info@sscmineralware.com.
