Effective asset managers have learned that where data is plentiful opportunity abounds. The challenge is not in sourcing the information but in harnessing readily available data to yield meaningful insights. Better information comes from comprehensive data aggregation and data cleaning. Meaningful insights come from a data analytics capability that transcends external data sources and internal operational needs. Data analytics working across disciplines to produce actionable intelligence for multiple audiences within the firm represents a significant competitive advantage.
Operational silos can form in asset management firms that prevent optimal exploitation of available data. Separate departments come to rely on individual, unintegrated data analytics technologies each chosen at a moment in time, for the purposes of a particular team facing a particular challenge. Over time, this patchwork of technologies become collectively more expensive and less relevant to the overall needs of the firm. Data analytics solutions aimed at limited bodies of data providing limited insights for individual teams create unnecessary redundancies when a broad-based and flexible data analytics technology that serves all departments can enhance operations, increase future revenue and reduce the cost of exiting revenue.
The data analytics process creates a virtuous circle of sales growth and operational efficiency.
A Data Driven Competitive Advantage
Data from multiple sources must coalesce and be leveraged through data analytics to present a clear and enlightening picture for each member of the executive team. A data-driven competitive advantage requires clean data that produces complete and accurate sales, asset and transaction reporting and customized data analytics that works for the entire firm, not just one department. Highly specialized data stewardship and data analytics yields visibility into sales, market trends, advisor performance, compliance and risk that systematizes and stabilizes not only sales growth but overall operational excellence.
Opportunities exist buried deep within data already available to asset management firms. All departments and disciplines within a company can leverage data analytics to uncover new efficiencies, new revenue opportunities and more streamlined approaches to compliance and risk.