RIMES recently gave two presentations at the SCREEN conference in Amsterdam on Sept.29. The theme of this year’s conference was “Going for growth and value: which financial information services to invest in?” The conference was held to bring together the financial services user firms and vendor communities of various European countries on both the supply and demand side.
The agenda of the conference was designed to explore solutions in financial technology, regulatory compliance and centralizing data management. RIMES delivered two presentations: “How to choose the right managed data service” and “The Operational & Data Governance Challenges of Alternative Assets for the Buy Side”.
How to choose the right managed data service
In the presentation on “How to choose the right managed data service,” RIMES identified the ideal solutions for Managed Data Services. These recommendations included:
- Data governance needs to meet the goals of diverse users and use cases. This is necessary to meet the ever-growing complexities in business dynamics.
- Organizations need programs that offer data transparency, which comprise a single line of sight from source to use and show detailed provenance and lineage.
- Supporting data governance is important to enable oversight and control of effective data management processes.
- Agility is necessary to accommodate evolving business goals without disrupting existing systems and organizational processes.
To put these solutions into context, RIMES used the Total Economic Impact (TEI) study it commissioned from Forrester Consulting. The objective of the study was to examine the potential return on investment that enterprises may realize through RIMES’ Managed Data Services, based on a three-year model with risk adjustments.
For the study, Forrester interviewed internal experts from RIMES, its own analysts, various subject matter experts in the technology space and RIMES customers that have used the service for more than six months. Forrester asked each group about the benefits, costs, risks and flexibility of RIMES’ Managed Data Services and quantified those components into a financial model.
All told, the study found that the total value of benefits outweighed the total value of costs, resulting in an ROI of 309 percent, a net present value of $3.6 billion and a payback period of 2.9 months. Beyond the quantified benefits, the study also found that RIMES:
- Improved service levels
- Enhanced data quality
- Increased responsiveness and scalability
- Boosted operational efficiency
- Enhanced risk management and mitigation
- Provided more access to expertise and support
The presentation also examined the feedback received from experts that participated in the survey. What the study found was that prior to implementing RIMES Managed Data Services, users were facing data quality and timeliness issues. With RIMES Managed Data Services, performance analysts saw a 20 percent boost in productivity. In turn, the organization experienced further savings in productivity gains, savings on additional workforce, resource cutbacks, data delivery cost reductions and savings on fees for legacy vendor services.
Ultimately, the primary benefits of RIMES’ Managed Data Services is that it customizes data to end-system specifications, thereby providing cost-effective and reliable management of key data.
The Operational & Data Governance Challenges of Alternative Assets for the Buy Side
With this presentation, RIMES discussed the recent findings from the Investit white paper on the challenges of alternative assets for institutional investment managers. The presentation discussed the difficulties that buy-side investment managers face in seeking portfolio diversification. It explained four key pain points for firms supporting alternative assets: organization, operation, systems and data. The presentation outlined the difficulties buy-side institutions face in analyzing the implications of these challenges and providing solutions to cut out operational complexity.
In its discussion, RIMES explained the reasons it commissioned the report, which were based on the growing use of multi-asset strategies. Their findings showed that there is a clear increase in the use of multi-asset strategies, as 67 percent of managers felt that these solutions will contribute most to business growth over the next three years. RIMES also explained that their findings showed that pension schemes are using alternatives more in recent years, as exposure has increased from 3 percent in 2003 to 14 percent in 2014.
The conclusion of the white paper’s findings was that while portfolio diversification with alternative assets can provide downside protection risk and generate strong returns, the costs of alternative assets can outweigh the benefits. This is particularly true if the operating model of the business is not implemented properly. Ultimately, the presentation focused on best-practices to overcome limitations in knowledge, processing, data and core platforms and operating models for alternative investments to improve data governance and time-to-market for new investment strategies.