Fund operators have realised the wealth of data they have on clients and themselves can be used as a resource. However, the challenge of using this information in a way that creates benefits for the company and reduces risks and inefficiency is a minefield of trial and error.

The forces driving the need for more data within organisations are complicated

Clear Path Analysis’s recently released Fund Technology, Data & Operations, Europe 2022 report, saw industry leaders from companies including Northern Trust Asset Management and Storebrand Asset Management looks at the best ways this challenge can be navigated. 

The forces driving the need for more data within organisations are complicated and there are challenges associated with this increased use, but it is still good business sense, says Mario De Bergolis, from Asset Management One International.

Companies should look at what the key challenges are

“The main reason [for more data usage] is for the competitive advantage we are looking for,” he explains. “We look at this from a productivity, investment, and sales standpoint, but ultimately you need a coherent data strategy, and this is driven by the business needs.”

De Bergolis says companies should look at what the key challenges are when exploring this and ask themselves, “what are the business-critical questions, and what data do we need to collect and analyse to help achieve this goal?”

This is a leadership driven question and once you determine what it is that the business needs to achieve then you can use data to help you get there

He says this proposition sits within the standpoint of a business leader rather than sitting under the remit of the IT department or under a Chief Technology Officer. “This is a leadership driven question and once you determine what it is that the business needs to achieve then you can use data to help you get there.”

According to a report by Accenture, this use of technology can often lead to cost reduction of up to 8% because of storage and data management needs being eased.

The new technologies available can be dizzying for fund operators. The ways that the adoption of new data technologies, including Cloud-based storage, could make data risk a more pervasive concern for organisations across the industry is increasing. So, if this is the case, and if clients are increasingly asking fund operators about having data concerns and asking for a solution, what should they do?

“As an asset manager, having these new data technologies, such as cloud storage, introduces economies of scale and allow us to focus on our core competence,” De Bergolis says.

Data ownership resides with us and so we need to evidence appropriate oversight

“If we talk about Cloud storage; it is easy to switch on a server, patches are automated, there are clear benefits for us to use this. Clearly data ownership resides with us and so we need to evidence appropriate oversight having placed the correct data governance and data management frameworks, due diligence, and appropriate service reviews.”

Research showed that asset managers using the cloud saw a 63% report improved operating efficiencies for change and run activities. This was “the most commonly-cited benefit of cloud ahead of more flexible business models (58%) and the ability to run as an agile business and respond to changing events (57%).”

De Bergolis concludes that, ultimately, data and technology is an enabler. “Clearly there are risks associated with it, but they can be mitigated and managed.”

To learn more about this issue and others facing fund operators, read our report Fund Technology, Data & Operations, Europe 2022 here.

 

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