In an effort to improve their data management, stay competitive and distance themselves from contemporaries who are in the industry, many buy-side financial institutions are investing in technology to better manage their business dealings, according to recently released polling data.
The survey, which was performed by an electronic trading communications company, found that more than 55 percent of financial business executives polled planned on taking advantage of managed services over the course of 2014 to improve their market data technology.
“Market data has been delivered as a managed service for some time now, and financial firms have realized the additional value-add that managed services can deliver when integrating this with their current financial technology,” Bart Bartolozzi, senior product marketing manager for the Jersey City, N.J.-based research and investing information services company, said in a statement. “New and innovative managed services offerings are now being delivered that provide firms with deeper technology oversight, best practice processes and other benefits that provide efficiency and productivity advantages or help meet the burden of increased regulatory pressures.”
One of the most prominent regulatory issues that buy-side financial institutions now have to deal with is the Volcker rule, which was put in place in December, placing restrictions on what companies can trade and invest in. Portions of the new rule have been eased, but many industry experts say that more revisions are warranted in order for companies to remain competitive.
Taking advantage of innovations crucial to long-term performance
The way in which banking institutions, hedge funds and insurers manage their data may be the key to growth, made possible by acting on technological innovations. As it relates to insurers specifically, a recent report calls on providers to think more about the “transformational steps and technology solutions they can deploy to raise their game for long-term growth.”
Gary Shaw, vice chairman of the New York City-based financial services firm that made the recommendation, said that to remain competitive, insurers should transform the way in which they do business. This may be made possible by investing in technology upgrades so that data governance can be better performed.
“Insurers face a full host of challenges,” said Shaw. ” We anticipate a growing number of organizations will re-evaluate their business models to more effectively compete in today’s marketplace.”
He added that insurers need to capitalize on opportunities as soon as they present themselves, rather than waiting.