In this analysis, Sailaja Devireddy, Global Head of Financial Marketing Services, Acuity Knowledge Partners, looks at digital due diligence platforms – the promise, pitfalls and the path forward
When digital due diligence platforms first emerged, they promised to transform how asset allocators and managers interact by digitising responses, improving collaboration, standardising formats, and making workflows more efficient.
Today, many platforms offer secure repositories, configurable workflows, audit trails, and seamless data sharing. But real transformation has been uneven, largely because the end-user experience remains inconsistent and the platforms often outpace organisational readiness.
The Adoption Gap: Need for a user first, platform second approach
While tools like DiligenceVault, Dasseti, and Door are becoming mainstream, many asset managers remain cautious about full-scale adoption. Not because the platforms aren’t functional, but rather they don’t always function well for the people using them. In our experience working hand-in-hand with global asset management firms, commonly encountered issues include:
- Platform fatigue: Asset managers are often expected to engage across multiple platforms with separate credentials, formats, and workflows. Maintaining profiles across these platforms can lead to the duplication of work, rather than simplifying it.
- Fragmented processes: Digital tools still sit atop legacy systems and processes, without being deeply integrated into response management systems (Qvidian, Responsive, Loopio etc.), CRMs, or compliance review processes. This could slow down due diligence workflows and lead to inefficiencies, inconsistent responses, and compliance risks.
- Content complexity: Without standardised, well-governed content libraries, even the best platforms can feel like more work for due diligence teams that are often already stretched.
- Unclear ROI: Smaller firms in particular can struggle to justify the cost and effort in the absence of tangible benefits or investor demand.
- Lack of insights: Many tools offer data, but not always decision-useful insights that can drive improvements to processes or create new business opportunities.
The problem of plenty: Why consolidation matters
Today’s digital due diligence ecosystem is facing a “problem of plenty.” There are simply too many platforms, creating confusion for both asset managers and allocators. Navigating five or more different portals for due diligence has become a norm rather than an exception.
This fragmentation is not just inefficient, it creates risk, slows response cycles, and increases the cost of coordination.
Looking ahead, we believe consolidation is inevitable. A smaller set of interoperable, scale-ready platforms will bring much-needed standardization, better ROI, and allow vendors to focus more on innovation and insights rather than competition for market share.
What can asset managers do now?
Instead of reacting to every new tool, asset managers need a user-first strategy that focuses on internal readiness and aligns with investor demand. Our suggested approach is as follows:
- Start with data and insight: Don’t just track platform usage; identify where your teams spend time, which questions recur, and which documents are reused. Use these insights to guide platform decisions.
- Centralise your content: A well-governed content library (FAQs, templates, firm-level disclosures) that feeds any platform is a strategic differentiator.
- Prioritise investor relevance: Focus your efforts on the platforms your key allocators use most actively. Volume doesn’t always equal value.
- Build change readiness: Adopt a change management mindset. Train teams not just to “respond” but to navigate platforms efficiently. Integrate tools into existing workflows, not around them.
Looking ahead: Adoption with purpose
Digital due diligence platforms have much to offer, but only when adopted purposefully. The future belongs to asset managers who focus less on tools and more on outcomes. That means choosing platforms based on fit, centralising internal knowledge, and staying agile as the ecosystem matures.
