Reorganizing Back Office Data to Fuel Growth

The year 2015 will see asset managers reorganizing their back office data to fuel company growth. In the last five years, asset managers have had to face challenging expectations both from investors and regulatory bodies. The demand for more transparency and accurate reporting has forced managers to refocus their efforts on improving operational efficiency and minimizing risk. To position their companies for growth, they need to systematically reorganize their back office data, ensuring a smoother flow from back office to middle and front office.

Defragmenting technology

After the economic crisis, the asset servicing industry saw significant changes in terms of regulations. To stay competitive, managers have had to employ more strategic approaches to reporting and compliance. One goal is to reduce manual processes so that errors can be controlled and risks, minimized.

The stricter regulatory environment has led technology providers to develop solutions faster. Regulatory complexity has contributed to an onslaught of single-function technology solutions that have left asset technology highly fragmented. For managers handling large portfolios and using these fragmented solutions, minimizing risks and controlling errors can be a nightmare.

This year, asset managers have been striving to reorganize and consolidate back-office technology. Doing so would help their companies achieve higher operational efficiency and minimize exposure to risk. Back office service providers play a vital role in this endeavor, as they could provide a single platform that can cover multiple functions.

Data management

Since the economic crisis in 2008, the asset servicing industry has accumulated an enormous amount of data in hopes of better understanding market risk. This year, as managers aim to turn their data in strategic tools, focus has shifted from data collection to data management. The Chief Data Officer (CDO) will come into the spotlight, as well as technology aimed at making sense of big data.

CDOs armed with proper technology can lead the movement to transform big data into business opportunities and strategic tools. The management firm with a well-managed data system will have the means to drive profit and growth. The CDO’s job is so vital that it will become one of the most sought after positions in the industry in the next five years.

The shift

The past couple of years have shown the need to remain competitive and growing through actively improving compliance. The various solutions to improve compliance have led to largely disorganized and fragmented technology solutions. The current shift is towards reorganizing operations through consolidating technology and prioritizing data management. The first step towards operational efficiency and reduced operational risk is for data leaders to emerge and drive the reorganization of back office data and technology.