Business insight through data analytics
Data Lakes, the term for the massive pools of information generated by funds’ day-to-day activities, are the defining element of Big Data technology. However, the quality of this data is the foundation of the entire activity and much care must be taken to ensure that all sources of data are reliable in order to guarantee accurate results and generate a genuine data warehouse of standardised data.
Data lakes are not only populated from information generated within the asset servicer, but is also sourced from other service providers, fund managers themselves, external data providers, information on social networks, as well as economic indicators or any other information that may be relevant. Data lakes generally hold up to several years’ worth of historical data, and are fed with information as close to real time as possible, which enables institutional investors and fund managers to query up-to-the-minute data.
Data Analytics can be deployed in many areas to assist institutional investors and fund managers, but a key area is financial reporting. The financial industry is particularly concerned by the exponential growth in data to be managed. In the wake of new financial reporting regulations, in particular MiFID, Basel III, Solvency II and AIFMD, institutional investors and investment management companies have had to confront massive data management and analysis tasks in order to meet transparency requirements in terms of information and reporting to the relevant national authorities. Big Data technology’s capabilities enable them to make queries and generate accurate reports on look-through, performance and risk, and regulatory ratios, quickly and reliably, permitting them to focus on their core business of generating investor value.