Luxembourg boasts a ~€5 trillion chest of assets under management in investment funds. But managers face a dilemma: 19% are happy with data accuracy (Celonis). Integrating and sourcing information securely is another hurdle, 53% of firms struggle to process raw alternative data into a usable format.

These challenges hinder progress. While half of firms have begun digital transformation, just 20% leading the charge see significant growth, according to McKinsey report “Unlocking productivity through digital transformation in asset and wealth management”.

Here are the 4 top data challenges.

1. Growing complexity and volume of data

The industry is experiencing an explosion of data. This includes not only traditional financial data but also alternative data sets like ESG reporting and new asset classes. Efficient processing and analysis of this data require new and advanced technological tools.

2. Impact of poor data quality

Research by Gartner estimates that poor data quality costs organisations an average of $12.9 million per year in losses, underlining the economic impact and the necessity for high-quality data in operational efficiency and decision-making.

3. Technological advancements and data modelling

Advances in technology, such as AI and ML, are increasingly used for data analysis in investment management. These technologies require high-quality data to be accurate for the foundation of future models built into the fabric of the ML landscape.

4. Regulatory compliance and reporting

The evolution of regulatory requirements are adding complexity. This requires advanced data capabilities to mitigate risk. The globalisation of financial markets necessitates robust systems for managing regulatory compliance, emphasising the need for sophisticated middle and back-office solutions.

Regulations like EMIR Refit and MiFID II are demanding accurate data for precise reporting, keeping firms busy and limiting innovation.

Where does Gresham come in?

Gresham’s solutions address these concerns from the regulatory reporting solutions anticipate changes and reducing non-compliance risks to the advanced data management and analysis ensure accuracy.

With transaction volumes rising, operational efficiency is key. Gresham’s Control automates reconciliation, investigations and data integrity tasks, specifically designed for investment managers, minimising errors and operational risks, supporting growth and productivity.

Many managers are considering system upgrades as they move away from legacy platforms. As financial systems become more modern and interconnected, effective data management is vital. Operations leaders are sourcing solutions that facilitate seamless data integration, crucial for operational agility and regulatory compliance. Control simplifies compliance, consolidating reporting and boosting efficiency across borders.

Gresham empowers the sector to thrive in the digital age, tackling data challenges, ensuring control and driving efficiency.

For more information, visit https://www.greshamtech.com/.

This promotional article was written by Gresham Tech as part of the company’s membership with the Paperjam+Delano Business Club. If you wish to become a member of the Club, contact us at club@paperjam.lu.