Surveys
Pulling Data Together Is A Big Investment Sector Challenge; Firms Struggle - DST Global Solutions
DST Global Solutions, a technology and data management solution provider to investment houses, has issued a report – written by analysis firm Aite Group – saying the overwhelming majority of firms it has polled see a need for more data aggregation capacity, but struggle to keep pace with it.
The report, Right Time, Right Content: Business Drivers for Smarter Investment Data Management, said that achieving effective investment data management is a high priority for asset and wealth management firms across the globe. Some 62 per cent of respondents said data aggregation is the biggest challenge they face.
European, North American and Asia-Pacific-based firms contributed to the survey.
The need is driven by a confluence of factors forced by business need, risk management, and regulatory reporting requirements, DST said.
Some 90 per cent of those survey respondents said they had experienced an increase in the need for data aggregation capabilities and that they felt they were ill-equipped to support these requirements.
"We undertook this survey with the Aite Group to highlight the growing importance of investment data management to the industry and to help identify the key challenges firms face,” Julian Webb, head of investment data management and analytics at DST Global Solutions, said in a statement about the report.
“The findings clearly highlight the fact that addressing the challenges is becoming a critical issue that firms need to prioritise in order to continue to operate successfully.”
“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,” said Virginie O'Shea, an analyst with Aite Group covering data management and post-trade technology.
“Together, we reveal the serious challenges facing these firms in attempting to conduct business as usual 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 added.
