A recent survey commissioned by InterSystems, a creative data technology provider, and carried out by independent research firm Vitreous World, highlighted that eliminating errors is the primary challenge in data management for global asset management firms. This comprehensive study involved 375 companies, including 51 from Singapore and Malaysia.
The survey findings indicate that amongst the various business requirements, firms identified the need for precise and real-time data as crucial. The data needs to be spot-on to meet diverse business goals that include responding to regulatory requirements, enhancing risk management, and boosting client engagement. Smaller companies reported similar challenges, albeit compounded by limited resources. Their aspiration for providing faster responses to the front office, improved risk management, and a thorough view of clients was substantially common.
The study decisively reveals that eliminating errors is the number one hurdle confronting data management, with 54% of participants identifying it as their chief challenge. Other major factors driving the improvement of data management include: responding more promptly to business requests (41%), helping the front office with accurate data for investment decisions (37%), and offering more timely reporting data for both internal and external stakeholders (35%). It was learned that managing disparate data sources and using current data are among the top challenges facing asset managers. In the Southeast Asia segment of firms involved in the survey, data-related problems were conspicuous with 21% saying consolidation of different sources of data is a significant challenge. Meanwhile, 26% struggled with managing data volumes and 29% with integrating current data.
Notably, the survey results showed that only 3% of respondents use data that is less than 5 hours old for reporting. Nearly half of the participants (46%) revealed that the data they use for making business decisions is more than 24 hours old. Moreover, 17% utilise data that is more than a week old. As for meeting the data needs of business stakeholders, about 66% need to involve a team of six to nine people. Furthermore, around 41% reported that their IT personnel allocate between a quarter to half of their time to fulfil data requests.
Discussing the survey outcomes, Joe Lichtenberg, Global Head of Product and Industry Marketing at InterSystems, commented, "This research confirms that the top data management challenges for asset management firms are around access to accurate, timely, and trusted data in order to eliminate errors, inform investment decisions and better address compliance, risk management, and client engagement needs."
Lichtenberg further explained the need for firms to reduce heavy manual processes that lead to inefficiencies and lengthy delays in a challenging environment. He said, "To do this effectively, firms must minimise labour-intensive and error-prone manual processes that erode efficiency and create delays."
To confront these challenges, asset management companies are seeking effective solutions to ensure quick and easy access to accurate and real-time data. One solution gaining popularity is the concept of data fabric architecture, which vitalises firms to manage a vast range of high-volume, disparate data sources with minimum disruption. Leveraging innovative approaches like data fabric can present the industry with an opportunity to effectively tackle long-standing data challenges.
InterSystems offers TotalView For Asset Management, a fully managed cloud-native software designed to harmonise all siloed data from inside and outside the organisation into one uniform information source. This software ensures consistent, timely, and accurate data is available to all stakeholders and utilises a modern data fabric design. This unique approach offers multiple business and operational benefits in a streamlined manner.