Many asset managers “struggle to make sense of the deluge of data they receive on a daily basis”, a Northern Trust report says.
The custody bank sponsored The Economist Intelligence Unit to survey over 200 firms, including insurers, across the United States and Europe.
Managers have access to better tools and technologies to help them benefit from new sources of data, but often struggle to make sense of it, the survey found.
Only 13% of respondents indicated they successfully capture full value from all of their data and 30% said the volume of data made it difficult to determine what is useful.
Executives who said their organisation captures value from data “entirely” or “fairly well” also said that their data strategy was flexible. Organisations with flexible data strategies more often reported monthly or quarterly assessments to review the effectiveness of their data strategies.
The survey suggested that companies should set up a centralised leadership structure, orchestrated by an individual or team with a holistic overview of the company and a strong collaborative spirit.
“This survey confirmed for us what we recognise as some of our clients’ biggest challenges,” said Pete Cherecwich, Americas head of corporate & institutional services at Northern Trust. “Whether they are looking for ways to manage their investment decisions, monitor their risks, or improve their reporting, they need to extract more value from their data to gain actionable insights.”
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