Skip to content
Search to learn about InterSystems products and solutions, career opportunities, and more.

Data: A Competitive Differentiator

A Global Survey of 375 Asset Management Firms' Top Data Challenges and Initiatives

business meeting presentation
 

How Asset Management Organisations Are Investing in Data Management

About This Research
This report summarises the key findings from a survey of 375 asset management decision makers at organizations with $30B to $500B assets under management (AUM) across the US, UK, Austria, Brazil, Germany, Malaysia, Singapore, and Switzerland. The survey covers independent asset management firms and hedge funds, as well as asset management functions within government organisations, commercial and investment banks, and insurance companies.

Download the eBook

Executive Summary

Asset management firms are grappling with a confluence of events that have created a particularly challenging environment in which to thrive. The post-pandemic reality of high interest rates and inflation, as well as global political conflict have contributed to significant market volatility, ending a long streak of strong market gains. As a result, asset management firms can no longer rely on market performance to drive profitability. To compete, all firms, regardless of size and geographic region, must deliver innovative products, differentiated client experiences, and streamlined operations.

Improving the use of data locked in silos across the enterprise offers asset management firms powerful competitive advantages. These include enhanced analytics that provide deeper insight into markets and clients, faster reaction to market fluctuations, more precise risk management, and improved responsiveness to regulators.

However, challenges persist with processing and managing the vast volumes of data spread across in-house and third party applications, data warehouses, data lakes, data marts, external data feeds, and other sources. These challenges result in delays, errors, inefficient workflows, and strained internal resources. Improving data management transforms the speed and accuracy of reporting to inform decisions and meet the increasingly complex demands of regulators. The good news is that investment in data management technology is a priority for asset management firms.

hands and laptop with charts

The research results presented in this report confirm that improvements to data management processes are considered critical by asset management firms in order to provide faster responses to the front office, improve risk management, and gain a 360-degree view of clients.

According to the research results, many asset management firms are challenged with data errors and delays, making it difficult to provide accurate and timely responses to their business stakeholders. Remediating errors and handling ongoing data requests requires dedicated support from technology staff. The research shows that both small- and mid-sized firms rely on a number of data sources similar to large firms and spend just as many internal resources to service data requests, despite their smaller overall staff, thus increasing margin pressure.

Faced with these barriers, firms are looking to a variety of solutions to speed and simplify access to accurate and timely data. One new approach that is rapidly gaining momentum is the data fabric architecture, which enables firms to address the challenges of disparate, high volume data in a non-disruptive way. With innovative approaches like data fabrics holding real promise for firms looking to leverage new capabilities, the industry has an opportunity to address age-old data challenges more effectively.

Key Findings

54% of firms are challenged by errors in data
This is largely due to the number of disparate data sources, and the amount of effort required to integrate, validate, and reconcile data to transform it into a usable format. With eliminating errors being such a significant challenge, the research shows it is now the number one driver for businesses investing in data management.

After eliminating errors, the next two biggest data management challenges cited by firms are improving responses to regulators and improving risk management.
Only 3% of all respondents use data that is less than 5 hours old for reporting
Only 38% of all respondents use data less than a day old for reporting. No firms with $100B to $500B in AUM reported using data less than 1 hour old for reporting.
66% of respondents require 6 to 9 people to process data to meet the needs of business stakeholders
For independent asset managers the percentage employing 6 to 9 people to process data rises to 76%, and among firms with $100B to $250B in AUM it rises to 77%. Additionally, 85% of respondents reported that their data teams and IT personnel spend up to 50% of their time servicing data requests from business stakeholders.

The research found that asset management firms typically use between 20 and 29 sources of data. When combined with the resources required to process data requests, this places disproportionately heavier demands on the limited resources of smaller firms when it comes to acquiring, processing, and managing all this information.
73% of respondents plan to invest in additional data management capabilities
Several business and operational drivers are behind this action. In addition to eliminating errors, the top business drivers for improving data management are responding to requests from the business in a timelier manner, providing the front office with accurate data for making investment decisions, and lowering data management costs.

Download the eBook for a deep dive into the data and survey results

Other Resources You Might Like

Oct 31, 2024
BLOOR Opinion Article
This article from UK Analyst Bloor Research recognises the capabilities and advantages of InterSystems IRIS data platform as an ‘innovative and powerful data management platform’ and it’s Smart Data Fabric capabilities offering a market differentiator.
Oct 31, 2024
A Benchmarking System to Spark Companies to Action
Download the Report
Oct 23, 2024
Market Note
This report explores how advancements in AI, including large language models and natural language processing, are revolutionizing every aspect of capital markets, from trading strategies to compliance and portfolio management.
Oct 22, 2024
Fact Sheet
Unified Data has the Power to Transform
Oct 22, 2024
ISG Research
This Ventana Research Buyers Guide: Data Platforms is an assessment of how well software providers’ offerings address enterprises’ requirements for data platforms software, evaluating software in seven key categories that are weighted to reflect buyers’ needs based on expertise and research.
Oct 21, 2024
TabbFORUM’s Market Structure Wave
In this edition of TabbFORUM’s Market Structure Wave video series, InterSystems Irene Galperin, Senior Advisor, Financial Services, discusses how firms in the capital markets have been investing and experimenting with AI, particularly most recently with the advent of ChatGPT. In this interview, conducted by TABB Group CEO Bruce Morris, Irene offers several use cases and explains that data is at the core of implementing AI, as data needs to be "high quality and consistent," essentially "AI-ready."
Oct 16, 2024
Migration Options for Application & Solution Providers
Migrating InterSystems IRIS® and InterSystems IRIS for Health™ from on-premises to the cloud offers many advantages for Application Providers and Solution Providers. These advantages include simplified operations, access to flexible resources, and enhanced resilience. Companies no longer need to worry about the physical constraints and expenses associated with maintaining on-prem infrastructure, such as power and space requirements and expensive computer hardware.
Oct 16, 2024
TabbFORUM’s Market Structure Wave
In this edition of TabbFORUM’s Market Structure Wave video series, InterSystems Irene Galperin, Senior Advisor, Financial Services, discusses how firms in the capital markets have been investing and experimenting with AI, particularly most recently with the advent of ChatGPT. In this interview, conducted by TABB Group CEO Bruce Morris, Irene offers several use cases and explains that data is at the core of implementing AI, as data needs to be "high quality and consistent," essentially "AI-ready."
Oct 10, 2024
Get Your Data AI-Ready and Simplify Development and Deployment
Unleash the power of AI in healthcare with InterSystems solutions for seamless FHIR integration and development.
Oct 09, 2024
Product Fact Sheet
InterSystems Data Fabric Studio is an essential element of a modern data strategy required to enable growth, optimise business reporting, reduce risk, and support compliance for any firm in the financial services industry.

Take The Next Step

We’d love to talk. Fill in some details and we’ll be in touch.
*Required Fields
Highlighted fields are required
*Required Fields
Highlighted fields are required
** By selecting yes, you give consent to be contacted for news, updates and other marketing purposes related to existing and future InterSystems products and events. In addition, you consent to your business contact information being entered into our CRM solution that is hosted in the United States, but maintained consistent with applicable data protection laws.