Asset management firms are changing their data management approach as market data costs mount, finds RIMES’ survey

Asset management firms are seeking more data but their approaches to the ever-increasing costs are changing, with operating model optimisation now the preferred approach to addressing market data costs for 60 per cent of respondents, a new survey from Regtech and data management provider RIMES has revealed.

RIMES’ annual Buy Side survey was launched when Covid-19 began to have an impact on global markets, and therefore provides the first unique insight into the changing priorities of the industry as the pandemic unfolded.

The survey also found that:

  • The priority to manage data costs for asset managers rose 13 per cent to 71 per cent after the WHO announced the Covid-19 pandemic.
  • In 2020 sourcing new data types, such as ESG data, has dramatically increased in prominence. 49 per cent of firms rate this as a key priority with 15 per cent of firms now rating it their top data priority.
  • The flexibility to use data – cited as a relatively important problem last year – has further increased in importance this year.
  • 48 per cent of asset management firms are interested in artificial intelligence (AI), while a further 23 per cent are already actively implementing AI-driven solutions during the pandemic.
  • Blockchain appetite has declined dramatically this year, with under 10 per cent actively implementing blockchain-based solutions. 

Andrew Barnett, global head of Product Strategy, comments: “Our latest survey clearly shows that managing data remains a huge challenge for many firms, with numerous different solutions and approaches being pursued. Although the impact of Covid-19 is yet to fully play out, early signs suggest that the role of data will change, with firms now reprioritising the focus of data governance to cater to the way data is consumed. Our survey further adds to a growing body of evidence that 2020 could be a watershed year for how data is managed and governed within the Buy-Side industry.”

RIMES’ Buy Side survey includes responses from over 100 asset managers, servicers and owners from across the financial services industry. 

Firms of all sizes and geographies responded to provide a comprehensive global snapshot.