From data overload to actionable insights: How asset managers can unlock their potential

At the recent TSAM London event, Stephen Tait, Product Manager at FINBOURNE Technology, joined a panel of industry experts to discuss, ‘Innovating investment processes through data driven insights – What are the tools and platforms that can elevate your business?’ Here are some key insights from the session.

Transforming the abundance of data into a competitive edge

The use of Artificial Intelligence (AI) is becoming more widespread across the industry. Three types of AI that have become particularly relevant to asset managers have been the use of machine learning, natural language processing as well as large language models. Typical use cases for these technologies are sentiment analysis; training & simulation; identifying patterns; semantic search; predictive analytics, identifying trends for informed decision-making, amongst many other cases. It’s becoming evident that when utilising these tools in combination, an asset manager has a powerful opportunity.  However, in order to maximise the potential of these tools, firms first require a robust data infrastructure.

There are three fundamental components of this foundation: Identity and access management, interoperability and full auditability.

An Identity and Access Management (IAM) system centralises the management of user identities, access rights, and permissions across diverse systems and applications to ensure the safe flow of data across an organisation – which is key when permissioning AI to make decisions or amend data.

To complement this, a foundational layer into which all internal and external connections integrate enables data to be connected, stored and leveraged seamlessly.

Full auditability and bi-temporality enable an understanding of what has been changed and critically empowers users to roll back any unwanted changes. Only with this in place can asset managers safely and robustly utilise the advanced analytical tools and technologies to fuel data-driven investment processes.

“Imagine you’re building a powerful engine for a car. You wouldn’t install such a potent engine without first making sure the surrounding infrastructure can support it. It’s similar with investment technology. It’s important that your data foundation is robust, secure and interconnected if you want to use these tools well.”
Stephen Tait, Product Manager at FINBOURNE Technology

Finding a trusted technology partner

In a market that evolves at pace, firms need to be constantly positioning themselves at the forefront of innovation to drive growth. However, asset managers who purely operate on closed systems face a distinct challenge in their journey towards data-driven innovation.

In order to focus on their fiduciary duties, asset managers are increasingly turning to external partners who offer an expert holistic approach to data management. With connectivity at their core, firms are now taking an API-first approach to integrate data that sits across the organisation. Data virtualization is also a highly effective way of establishing this connectivity. Where data can be fetched from source systems in real-time, without the need for duplication. This allows users to easily combine datasets in one place and help to drive more efficient investment decisions.

“Partnering with a trusted technology provider isn’t limited to one product, it’s about empowering them with the connectivity needed to co-exist with a firm’s existing technology infrastructure. If you leverage a partner that prioritises efficiency, security and collaboration, you’re on the road to success.”
Stephen Tait, Product Manager at FINBOURNE Technology

FINBOURNE Technology

At FINBOURNE, we combine extensive technical expertise in financial services data management with a best-in-class, open, cloud–based investment management and servicing product ecosystem.