Survey shows data fragmentation in front offices

‘Broken’ data appears to be a significant problem affecting asset management front offices, but it has become an “accepted way of life”, a survey found.

Seventy-nine per cent of 100 asset management representatives said at least 9% of “in-bound” data in their front office was broken and required manual repair.

Out of this, 17% reported that more than 20% of their data required attention.

Nearly half of the firms had automation levels of less than 60% in trade execution flows, and another finding was that front offices were using ten or more databases to support nearly 40% of core investment data – data that covers customers, instruments and transaction databases.

This last finding reflected the “technological complexity of a fragmented front office environment”, said Simcorp, a systems firm that carried out the research with Adox Research, a tech adviser.

But IT budgets and the desire for investment to replace “inhibiting” legacy technology were increasing, Simcorp’s ‘Follow the money’ survey found.

Over 64% of buy-side tech buyers planned to upgrade their order management systems over the next three years, including by replacing them.

Brent Rossum, director, front office product management at Simcorp, said there was an abundance of legacy technology and added: “Fragmented infrastructure, manual reconciliation, and lack of automation are big concerns.”

©2017 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST