Feb 03, 2023

The following blog post is one in a series of Cutter 2023 Trends that provide insights into industry challenges and considerations for our clients and member firms in 2023 and beyond.

In the past, investment managers talked about the need to modernize their data architecture ─ and meant it. But it’s taken managers time to achieve some level of success, as industry vendors weren’t ready, and this drove investment managers to blaze their own path. COVID-19 lockdowns in 2020 forced firms to prioritize the client experience. Now, today’s market volatility is forcing investment managers to prioritize the data and the tools required to work with the data for analytics, decision-making, and risk management. The market downturn has firms reassessing their spending priorities, and despite the current economic conditions in 2023, we expect them to continue to prioritize data management modernization.

Firms want modern data platforms with cloud-based data storage and next-generation tools for data ingestion, cleansing, transformation, and self-service data access. But technology improvements are of no use unless the business drives the implementation of the technology, and firms adapt current data management practices to the modern technologies. While IT resources once controlled ingestion of new datasets and data access, firms are now on a path to use next-generation tools to support rapid ingestion of new datasets and give users access to raw data for analysis.

Meanwhile, asset management clients have grown more sophisticated and demand access to more data and transparency. The work firms did in recent years to improve the client experience provides the digital delivery mechanism for clients to access the data they need.

Data is fluid. Like a river, it has eddies and rapids, and firms must take advantage of that fluidity. We expect that an increasing number of firms will implement modern technologies in 2023 and beyond, and adapt the processes needed to leverage that data.

For more 2023 Trends, read 2023 Trend: Supporting the Client Through Data and Digitization.