ASSET MANAGEMENT MOVES INTO THE SPOTLIGHT

Figure 25 how seNIor LeAders vIew the ImportANCe of INvestmeNt dAtA ANd ANALytICs reLAtIve to other mAJor strAtegIC prIorItIes

importancE of data analytics

Large quantities of data are being created at exponential rates as the digital era progresses. Taking advantage of this data through analytics could prove to be a significant shift in the way business is done. But despite technological advances over the past century that impact communication and business, the financial services still remain in a nascent stage in this area. 32 According to BNY Mellon, “Big data will resculpt the asset management industry. New approaches will be required in research, analytics, asset allocation, trading and riskmanagement. Through visualization-aided smart syntheses, often seen in the burgeoning era of ‘dashboards’, big data will expand the‘assimilation range’of existing information delivered by capital market professionals.” Regulators could use big data in the future for supervision and control purposes. The industry will have to address challenges such as managing high data volumes, data quality, cleansing, security and privacy.

1%

8%

37%

54%

Low level/Not a strategic priority

Most important strategic priority

High strategic priority

Mid-level strategic priority

Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit Sources:StateStreet2013DataandAnalyticsSurvey conductedby theEconomist IntelligenceUnit

data analytics can drivE invEstmEnt stratEgy

Leveraging big data to make smarter investment decisions has become an important priority for asset managers facing major changes in the financial world. Asset managers who responded to the State Street survey felt their data capabilities helped them manage risks across multi-asset portfolios and stay abreast of regulatory and compliance issues. Effective data management was also highlighted as an essential com- ponent of developing the ability to respond to the market in real time.

Nine out of 10 institutional investors view data and analytics as a key strategic priority, according to a recent survey by State Street. 33 In fact, two-thirds of the executives in that survey said leading-edge data and analytics capabilities will be among their most important competitive advantages in the future.

32 BNY Mellon,“A first perspective”, 2013 33 State Street, "Leader or Laggard ?”, 2013

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