Go Figure

DATA PROCESSING IS NEEDED BUT ANALYTICAL INSIGHT IS THE REAL VALUE

Middle offices are experiencing a role transformation.

They can’t simply process the numbers anymore. They need to do more with the data.

In today’s market, their output must add real strategic value.

In other words, data needs to be operationally excellent.

This isn’t just a question of cost. Middle office output needs to inform and persuade

decision making elsewhere within the firm.

MAKING THE NUMBERS COUNT

“The overall priority is managing data as an important corporate asset.”

GLOBAL ASSET MANAGEMENT AND ADMINISTRATION, LINEDATA 2016

Reasons why:

• They can be more nimble and ‘hands on’ than their larger competitors.

• They are more adept at changing their workflows.

• They can extend the data they capture and change the way it is analyzed, how it is distributed and to whom.

• They are used to higher levels of collaboration within the business and have a better understanding of how their work impacts others.

SMALLER FIRMS ARE IDEALLY PLACED TO DO THIS

“Intelligent application of technology plays a vital

part in any firm’s success.”GLOBAL ASSET MANAGEMENT AND ADMINISTRATION, LINEDATA 2016

To fulfill its potential, the middle office needs strong capabilities in four areas:

TAKE FOUR

1. Clean data at input level.

2. The ability to service internal and external customers with accurate analytics.

3. The ability to track and make sure that data is treated correctly and remains clean throughout its journey.

4. A good understanding of why other business units need the data and how it is used.

Let’s look at this in more detail

CLEAN DATA

Boutique asset management firms are not tied down by historical legacy systems that result in

separate data silos and large replacement costs.

This means they can embrace the brave new world of big analytics and create a single copy that can be

adjusted for various purposes.

“Low quality data would lead to incorrect calculations and records and may even

attract the attention of regulators.”GLOBAL ASSET MANAGEMENT AND ADMINISTRATION, LINEDATA 2016

CLEAN DATA

If everyone uses the same data and has the

same starting point, it’s fair to assume the

analytics will be accurate and comparable.

Having the right technology to take in data and normalize it - and then perform the right analytics to answer the questions that the various users are

asking of it - is increasingly important.

Defining the questions and being able to visualize data to bring out what is

important is another essential skill set.

Middle offices must provide this level of service if they are to become central to the firm’s strategic thinking.

ACCURATE ANALYTICS

Being able to follow data through its journey and accurately pinpoint where analytics have been applied

(and for what purpose) makes for better overall awareness and understanding of the data.

It also allows for adjustments to be made and means the data can be recalibrated as required.

THE ABILITY TO TRACK CLEAN DATA

In the sub £10bn AUM space, asset managers can operate with greater

flexibility and are more open to change.

These smaller, more agile players will be the ones who lead the change needed to take the asset management industry forward.

With new technology coming into the market, they will be in a stronger position

to compete with the largest firms.

THE OPPORTUNITY TO INNOVATE

TOP PRIORITY

“From outsourcing to multi-asset classes to global operating models, the biggest

story is all about data. Could 2016 finally be the year when data management

initiatives take a front seat?”2016 OUTLOOK, CITISOFT

• Middle office output needs to inform and persuade decision making elsewhere within the firm.

• Clean data that is accurate and trackable is essential to this task.

• Having the right performance and risk analytics capability goes hand in hand with the data.

• Data management is now a main agenda item for many COOs and their Heads of Performance and Risk.

TAKEAWAYS

LOOKING FOR IMPROVEMENT IN

YOUR MIDDLE OFFICE?

Risk and performance analytics 2016-2020 The future business case for boutique asset management firms

Review how smaller asset managers are shaping up their middle offices for the future.

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