Our latest research report, the Financial Data Impact Report 2023 examines the data management challenges and trends shaping the investment management industry. Surveying 121 data management experts from around the globe, the findings reveal that investors are increasingly embracing quantification and alternative data while facing significant challenges in onboarding and utilizing these datasets.
- Increasing Data Budgets and Outsourcing: The report indicates that 80% of investors plan to increase their data budgets over the coming two years. Moreover, four out of five firms expect to further increase their outsourcing of data management services to better handle the growing data needs.
- Time-consuming Onboarding Process: Investors face a cumbersome onboarding process for new datasets, with an average time of three months to integrate the data into internal systems. 82% of respondents agree that this process is complicated, time-consuming, and frustrating.
- Struggles with Alternative Data: The investment management industry faces challenges in effectively utilizing alternative data. Quantifying the value of alternative data poses the primary challenge for investors, as they explore new ways to gain unique insights.
- Growing Alternative Data Market: The market for alternative data is rapidly expanding, with 75% of those surveyed planning to increase their usage in the next 12 months. The most popular alternative datasets utilized by investors are survey and app usage data.
As the investment management industry continues to embrace quantification and alternative data, firms must adapt their operating models to address the associated challenges. By focusing on efficient and scalable solutions, investors can unlock the full potential of data-driven insights and maintain their competitive edge.