Modernizing Data Management: Unlocking Competitive Advantage in Asset Management
The investment management lifecycle is becoming increasingly data-driven, with firms leveraging data to generate alpha, creating efficiencies in data acquisition and usage, and enhancing governance. However, as the industry evolves, so do the challenges and opportunities associated with data management.
Advancements have significantly expanded data management capabilities, making it easier to access, analyze and distribute information across the investment ecosystem. Key developments include:
Cloud-based, AI-enabled data platforms like Snowflake
Real-time data access across front, middle, and back-office functions, reducing reliance on batch processing.
More efficient data aggregation and normalization, improving connectivity and distribution across systems.
Expanding analytics opportunities, enabling investment firms to extract insights from a wider array of structured and unstructured data sources.
At the same time, asset servicers are making significant investments in data management, aiming to increase their value proposition to clients though:
New technology platforms that enhance data infrastructure.
Expanded data operations teams offering outsourcing and managed services.
In-house or integrated client data, such as Book of Record (IBOR), Accounting Book of Record (ABOR), and security master data.
Built in data governance features that improve compliance and operational control.
Industry-wide insights derived from vast datasets across multiple clients and asset types.
Despite these advancements, many asset managers struggle to extract meaningful value from new data capabilities. Key challenges include:
Limited proven use cases —while technology is advancing, real-world applications that directly drive investment performance are still evolving.
Complex existing operating models, where legacy data flows and management structures are deeply embedded, making transformation difficult.
Hurdles in outsourcing data operations, as transferring data oversight to a third party involves intricate service models and integration with numerous downstream systems.
Navigating these complexities requires a strategic approach that balances innovation with practical execution. In the next section, we’ll explore how asset managers can develop a data strategy that aligns with business objectives while overcoming common obstacles.
Turning Data Challenges into Competitive Advantages
While asset managers recognize the potential of modern data management capabilities, unlocking real value from these advancements remains complex. Legacy systems, fragmented data architectures, and evolving regulatory expectations make it difficult to integrate new solutions seamlessly. The key to success lies in building a data strategy that balances innovation with operational efficiency and risk management.
At Clarendon Partners, we help asset managers and financial institutions bridge this gap by designing and implementing effective data management strategies. Our experience working with major asset servicers and industry technology providers enables us to support firms at every stage of their data transformation journey:
Defining Data Strategy and Target Operating Model - We conduct comprehensive assessments to help asset managers design data management frameworks that align with business goals, regulatory requirements, and technological capabilities.
Engaging with Platform Solutions and Vendor Selection - With hands-on experience and industry-leading cloud-based AI data platforms, we guide firms through solution evaluation, selection, and integration to ensure seamless adoption.
Mapping Data Architecture and Downstream Impacts - Understanding the complexities of security masters, IBORs, ABORs, and other critical investment data sets is crucial. We help organizations assess technical requirements and map data flows to improve efficiency and reduce operational risk.
Managing Data Transformation Programs - Our experts lead end-to-end implementation efforts, ensuring that new data platforms, governance structures, and operational workflows are successfully deployed across the organization.
In a rapidly evolving data landscape, having a strategic partner with deep industry expertise can make the difference between incremental improvements and transformative change. Contact Clarendon Partners to learn how we can help you modernize your data management strategy and turn data into a competitive advantage. Reach out to us at evolve@clarendonptrs.com to learn more.