IM industry struggling with data aggregation
The investment management industry is experiencing an increased need for data aggregation but feel ill-equipped to support the capabilities they need.
According to DST Global Solutions global investment management survey, 90 per cent of respondents need further data aggregation capabilities.
Its research found that data aggregation was a common challenge for investment managers across the spectrum, despite differences in the impetus for reviewing investment data management support structures.
Tier one institutional asset managers and wealth managers from European, North American and Asia-Pacific firms said the drivers of an increased need for data aggregation included business need, risk management and regulatory reporting requirements.
DST Global solutions head of investment data management and analytics, Julian Webb, said the results showed data management had become a critical issue for successful business operations.
The study, 'Right Time, Right Content: Business Drivers for Smarter Investment Data Management’ written by analyst firm Aite Group, found that achieving effective data management was a high priority for asset and wealth management firms around the world.
“Data is the DNA of investment management firms, yet finding ways to better harness the value of this data has been an under-served challenge in the industry,” Aite Group analyst Virginie O’Shea said.
O’Shea said the study illustrated the challenges in conducting business with investment data that is disparately stored and inconsistently managed.
“These challenges can, in fact, act as a barrier to entry into new markets due to a lack of scalability,” she said.
Recommended for you
Several wealth management companies have been shortlisted in the second annual Australian AI Awards program, which champions individuals and organisations pioneering Australian AI innovation.
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
