Asset owners and fund managers rate data and analytics as a top strategic priority, according to a new survey by State Street.
The survey, The Innovator’s Journey: Pathways to Data Dexterity, commissioned by State Street and conducted by Longitude Research, found that 77 per cent of senior executives and asset owners in the Asia Pacific rate data and analytical proficiency as a top priority.
The survey also revealed that 72 per cent of APAC respondents intend to invest more in data management systems over the next three years.
State Street chief innovation officer and head of advisory solutions Jessica Donohue said: “Advanced data tools and practices will be one of the most powerful agents of change in the investment industry over the next decade.”
“Investors now face many disruptive trends with the emergence of new multi-asset investment strategies, the opportunities created by globalisation and a rising trend of regulation.
“[Investment organisations] need to speed up the process and have a clear vision of how they can extract real value and accurate insights from what is ultimately one of their most strategic assets,” Ms Donohue said.
Whilst roughly three-quarters of respondents rated data and analytics as a strategic priority, 55 per cent indicated that their data capabilities would not cope with an increase in regulatory requirements.
“This reflects the view of a large percentage of global respondents who say they do not have total confidence in their ability to generate forward-looking insights, evaluate risk and performance and stress-test their portfolios,” the State Street survey stated.
Three-quarters of global respondents indicated that they have increased the amount invested in data and analytics by between 5 and 20 per cent each year for the past three years.
State Street also found that the largest area of spending for organisations will be data governance and implementing suitable policies to address data security.
“Investment organisations need to focus on getting to the point with their data capabilities and building strong foundations to gain a competitive edge in the high-tech investment model of the future,” Ms Donohue concluded.
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