Nearly two-thirds of financial services companies struggle to store, access and share data, with more than half considering single data hubs to enhance their ability to make data-driven investment and business decisions.
So says a new study based on a survey of more than 100 businesses, including investment banks, asset managers and broker-dealers across Europe, North America and APAC.
According to the authors, it underscores the vast challenges and opportunities for financial services brands to better use data to boost investment returns, improve operational efficiencies and more easily meet regulatory reporting requirements.
It shows that nearly two-thirds (64%) of companies believe their organisation’s research data is stored in too many disparate systems or locations across the enterprise, with a similar number (66%) not able to access all their core investment data in one place.
Meanwhile nearly three-quarters (72%) have no tools or insufficient tools to create personalised, authoritative research for clients in a timely manner, which hinders the client experience.
To tackle this, way over half (56%) of firms are considering a single investment research "hub" to store all research and ancillary information to better make data accessible.
Two-thirds of these firms believe a single hub will enable them to make better investment decisions, and 59% expect it to enhance the client experience through personalised research.
The report, "Investment Data Practices Under the Spotlight", has been compiled by financial market information provider Waters Technology and data platform specialist MarkLogic Corporation.
Respondents said the biggest challenge to achieving approval for investment in new technologies is the business case but 69% of firms believe building the case for investment in a data hub around improved operational efficiencies will help them secure the funds.
Meanwhile, 49% believe the business case for an improvement in investment decisions that enable them to achieve "alpha" is also key.
MarkLogic’s chief technology officer for financial services, Giles Nelson, said: "For any buy-side firm that wants to make the best possible investment decisions, having data at their fingertips is critical.
"It’s also important to regulators that firms understand how a conclusion was derived, which means they’re able to track data lineage to justify decisions— not only to regulators but to investors or other key stakeholders.
"This is not about getting every decision right and proving your case, it’s about showing there’s a process, and you have data to support decisions."