Almost half (48 per cent) of senior executives at UK investment organisations believe the institutions they represent see investment data and analytics as their most important strategic issue. The figure for the rest of the world is 34 per cent.
That’s according to a survey of 400 organisations around the globe commissioned by State Street Corporation.
When evaluating how effective they are at managing their data though, only 23 per cent of UK respondents rank as Data Innovators – companies with advanced data infrastructure, expertise and high-quality data governance. Almost half (48 per cent) are Data Movers – companies actively moving toward better data capabilities, and 30 per cent classify as Data Starters, at an early stage in their data journey. The corresponding global figures for all respondents are 37 percent, 36 per cent and 27 per cent.
The top two factors driving change around how UK investment companies will manage investment data over the next three years are increased demand from regulators and competitive pressure. This was the view of 33 per cent of UK respondents for each category. The corresponding figures for respondents on a global basis are 24 per cent and 27 per cent respectively.
This greater focus on regulation helps explain why 55 per cent of UK respondents expect regulatory reporting requirements to increase over the next three years, but their data capabilities will cope adequately – only 40 per cent of respondents on a global basis believe this.
The report, “The Innovator’s Journey: Pathways to Data Dexterity” asked respondents to identify the toughest data integration challenges facing their companies. UK respondents identified accessing external data and the cost of external data as their top two (35 per cent of respondents cited each of these), but only 26 per cent and 31 per cent of senior executives interviewed on a global basis said this.
“UK respondents place a bigger emphasis on data infrastructure and analytics than their global counterparts, and the impact of regulation is a clear factor behind this,” says JR Lowry, head of State Street Global Exchange for Europe Middle East and Africa. “However, on both a UK and global basis, our research shows many organisations have only just started on their journey to developing strong systems for managing their data effectively. Increasingly, success for both asset owners and managers will depend on how strong they are in this area.”
In terms of where investment organisations are going to invest over the next three years to improve their data analytics and infrastructure, the top priority for UK respondents is quality and availability of data talent – the view of 58 per cent of respondents, compared to 50 per cent of global respondents. The second biggest priority for UK respondents is investment in data infrastructure (50 per cent) compared with 39 per cent of global respondents. However, on a global scale only 395 per cent of respondents said this.
The survey interviewed 40 UK senior executives, with 33 of them working for organisations with assets under management of USD10 billion or more.