Just as the use of advanced analytics transformed baseball by challenging long-held beliefs and rewriting convention (Moneyball), the same revolution is also occurring in asset management where an evidence-based, data-centric mindset has taken root among asset managers.
Liz Blake, Global Head of Eagle Managed Services, asserts that managers now see data as a true asset that allows them to deploy their resources more productively. Here is an excerpt from her report published in Eagle Exchange:
Analytics in asset management isn’t just about improving portfolio management. Organizations at the front of the change curve are already using analytics to augment client relationships, optimize internal processes and resources, exploit new market opportunities, and roll out non-traditional products, such as complex derivative securities or alternative products with more pronounced data needs.
To achieve this vision, the focus of the data function itself must change inside asset management firms. With the amount of energy expended to get data ready, data resources don’t have the bandwidth to focus on analytics that can provide a material, competitive advantage to drive new revenue and to build enhanced client communication.
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Asset management firms must adapt to stay relevant, and in taking these steps, the internal data function will tilt from production to analysis. In-house resources will dedicate more time to interpreting the data and contextualizing it to help achieve the organization’s most ambitious objectives. Internally, data officers and analysts will become empowered to identify market opportunities, impart operational efficiencies, strengthen the sales process, and surprise and delight clients with deeper, more effective analysis. They will also leverage technology and automation in new and exciting ways. Together, this will help the broader organization keep pace with a rapidly changing market and stay ahead of competitors.
