Innovation is necessary for growth and success in all businesses and particularly in the asset management industry, where it can improve operational efficiency and help companies meet regulatory obligations.
Companies must innovate in the digital age
A recent PwC study found that there is a proven link between business innovation and sustainable growth, noted ITProPortal. Today, it is increasingly important for companies to invest in new technology and expand their capabilities in order to compete and succeed. Especially true in the finance industry, organizations that make smart investments are able to raise operational efficiency and allow key executives to spend more time on value added activities. Whether in the form of in-house built solutions, third party software or outsourced data management services, the fact is that innovation is a necessary part of growing a business. Unfortunately, not all companies make these smart investments.
Our time is defined by big data, but, as ITProPortal pointed out, not all business leaders have accepted the implications of that. In a globalized world, organizations now find themselves having to manage more data sources, maintain more data channels and continue the expansion of their business models at an accelerated pace. Companies that try to do all these things on their own are at a disadvantage. This complex business environment calls for participation with external partners and reliance on sophisticated solutions.
“In the finance industry, the need for innovation is particularly evident.”
In the finance industry, the need for innovation is particularly evident. As data governance regulations continue to evolve, asset managers find themselves having to ensure the accuracy of their datasets as well as maintain transparency with regulators. MarketWatch reported on the penalties incurred by finance firms that fail to stay in compliance. Managing enormous streams of data from multiple providers is not an easy task and not all firms feel entirely confident about the numbers. Asset managers that do all their data management internally are likely to face difficulty in the future, as they rely on their own workers for data reconciliation and verification practices, which are secondary to other responsibilities. This is why relying on outsourced management data services is a good idea.
According to ITProPortal, at many companies, a “data deficit” threatens decision making and exposes certain operational risks, noted the news source.The inability to access the right data can have a very detrimental affect on business performance and lead to organizational mistakes. In the finance industry, where firms are responsible for managing the assets of individuals, institutions and company funds, the need for data accuracy and transparency is paramount. Organizations that fail to innovate and rely on external partners may suffer real losses or miss out on important opportunities in the future.
Outsourced management data services
Investment in new solutions and reliance on outsourced managed data services can be the difference between just getting by and true success. For asset managers, selecting investment strategies is complex work. It requires accuracy and insight. Therefore, methods by which managers receive and access data must be streamlined and robust. Many companies will continue to rely on disparate data feeds and spreadsheets to handle their data management, but the smarter managers will opt for outsourced management data services.
Managed data service providers are able to offer organizations solutions that range from data processing to data governance. Relying on these services, asset managers can not only consolidate all their data streams under one provider, but also ensure that their index and benchmark data is sourced in a way that is ready for use, in each department, across the entire organization. These data specialists also help firms comply with reporting and regulatory requirements, raising efficiency in data management while also lowering the cost at the same time.
Organizations that are committed to following smart operational strategies should innovate sooner rather than later. That innovation does not have to be managed in-house. The goal is for company staff members and regulators to access information and analyze it quickly. Outsourced managed data services provide the right the data infrastructure to make that happen. Asset managers should invest in the right tools and embrace the fact that innovation is a necessary part of achieving growth and profitability.
- ESMA Consults on Broadening the Scope of MAR
- EU Regulators Turn Tough on Market Surveillance Compliance
- SOTERIA and RIMES Technologies Partner to Provide a Real-Time Integrated Trade and Communication Surveillance Solution for Financial Services Firms
- The ETF Market is About to Explode: Is Your Firm Ready?
- RIMES Hires New Head of Sales for Asia