Objectway has recently participated in the AM Tech Day 2023 – the European market event dedicated to the impact of technological innovation on the asset management industry, gathering asset managers, wealth managers, asset owners and FinTechs.

This year’s key theme was “Take back the control of your data!” and discussions were centred on the profound transformation of the industry, largely driven by the evolving expectations of investors and technological advancements, particularly the rise of Generative AI. Asset managers are facing higher demands of establishing robust data governance, ensuring they retain ownership of their data, and determining the responsibilities of data providers and AI interfaces. The European initiative for data governance Gaia-X was a topic of interest, raising questions about the future federated data infrastructure for cloud services.

Another significant area of focus is the potential of client behaviour data already present within asset management systems. By harnessing this data, asset managers can gain invaluable insights into client preferences, enabling them to offer more tailored services. This is especially pertinent given the growing concerns about greenwashing and the consistency of data, leading to an increased demand for Environmental, Social and Governance data. A 2023 study by EY revealed that 60% of asset managers use between 2 to 5 data providers, with the global ESG data market being valued at €1.3 billion.

As organizations look to expand globally, transitioning to Data as a Service and leveraging marketplaces with investment data and API’s can be beneficial. However, they must carefully consider the advantages and disadvantages of various data strategies, such as virtualization and consolidation. AI’s role in enhancing client communication and the balance between self-care and personalized client management was another topic of discussion.

The potential of Decentralized Finance (DeFi) in reshaping financial management was explored, touching upon the opportunities in digital assets and the challenges associated with investor protection and anti-money laundering measures. Asset managers are also being encouraged to rethink their digital and distribution strategies to offer more specialized experiences. The potential of Direct-to-Consumer models and the role of Generative AI in identifying retail client needs were highlighted.

Regulatory requirements and data volumes are pushing market players towards more advanced data strategies, with AI being recognized as a game-changer in ensuring business growth, compliance, and operational efficiency.

The industry is looking forward to advanced data warehouse architectures, data quality optimization, de-duplication and standardization initiatives. In essence, for asset managers to thrive in the future, embracing technological advancements, understanding evolving client needs, and ensuring robust data governance are imperative.