Rising Data Volumes and Information Silos Call Time on Informal Approaches to Investment Research Management

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Bipsync and Greenwich Associates Survey Reveals Heightened Demand for Modern Research and Data Management Platforms and Processes

NEW YORK, Jan. 15, 2020 /PRNewswire/ — Institutional Investors identify collaboration, data normalization and information aggregation as their research-technology priorities, as IT budgets are squeezed and competitive pressures grow, according to a new report by Greenwich Associates. Amidst this re-evaluation of investment research operations and value, Bipsync believes 2020 is a pivotal year for modern research platforms for the investment front office.

Research Automation for Modern Investors

The report, entitled “Research Management Systems: Essential Tools for Modern Investment Management,” is the result of in-depth interviews with 57 executives across asset managers and asset owners into their increasingly complex investment research and data management processes.

The survey found firms consuming hundreds of research services and data sources in some cases, yet almost three quarters of respondents still rely on informal tools and ad-hoc manual processes to store, share and synthesize their most important research IP and assets.

Keeping track of research and data sources and cross-referencing content across ideas ranked among the top research painpoints, as many firms now realize that traditional systems and siloed tools like spreadsheets and shared drives are no longer sufficient.

Dan Connell, Head of Greenwich Associates Market Structure Practice and Co-author of the report, commented: “When an investment firm consumes hundreds of different sources that can be updated on a daily, monthly or weekly basis, it’s obvious that data and research management is so central to their operations that it could have an impact on investment performance as well as compliance.”

Of particular interest are the findings on what those organizations with a Research Management System (RMS) in place do differently from those that do not – more than half citing notable improvements in both productivity and compliance posture after implementing a RMS.

However, the report also highlights functionality gaps of ageing legacy RMS systems. Demands of modern investors fall short for those with older RMS (5 years old or more). All allocators (100%) surveyed stated their legacy RMS is poor or below par on mobile and accessibility, while 40% of asset managers cited poor integration capabilities.

“The findings mirror the priorities and challenges we hear day in day out from our Bipsync prospects and clients,” said Danny Donado, CEO of Bipsync. “The confluence of rising regulatory requirements, competition for assets and technology modernization is driving funds to reassess their research and knowledge operations for competitive advantage – organizing research in a single system of record is a must-have foundation.”

‘These findings demonstrate that ‘Managing research’ is only one component of what funds demand from modern software that needs to bring efficiencies and value to the pre-and-post-investment lifecycle. From enhanced collaboration, process automation and pattern recognition across systems, right through to mobility and user-experience, it all points to driving differentiation right across the investment front office.”