Through the looking glass …
The Buy Side’s quest for ‘look through’ to understand investment flows and underlying investors
- Greg Glass, Head of Revenue
- Luke Tones, Head of Product
The Buy Side’s dilemma
The existential question facing the buy-side is how to grow assets and service clients at lower cost. This drive for operational efficiency is dependent on a capability to collate accurate data about investors and decision makers, including their influence over the flow of money into their investment products. Industry leaders are investing in the capability to ‘look through’ omnibus accounts and fund distributors to create differentiated client experiences. Meanwhile, laggards are struggling with a partial view of sales performance and client engagement.
“It costs us thirty dollars each year to disaggregate or ‘look through’ a million dollars of omnibus assets to the underlying investors and decision makers. We need that level of data precision to make the analytics powering our client insight really sing”
Specifically, the challenge is to assemble economic data about the activity of the end investor and decisions makers in a form that supports 160+ use cases across the enterprise which Aiviq has identified through its research. An example of one of these 160+ use cases is the regulatory requirement to understand revenue concentration in a fund by decision maker.
Investor flows and assets under management then have to be combined with demographic data about the investor organisation and the decision makers within them. This is a more complex problem than it first appears for the following reasons:
“The investment industry’s data structures are hard wired to operational ‘accounts’ but creating client insight requires organising data around a commercial view of ‘client’ that requires a massive amount of data manipulation and costs the industry USD 100mn each year in avoidable inefficiency”
Leaders are investing in strategic data management and analytics platforms
So how are leading buy-side firms solving this forensic data conundrum to understand the economic performance of end investors? Industry leaders are buying data management and analytic platforms with the following components and capabilities:
“Matching ‘account’ to ‘clients’ without any explicit key is a complex data problem and one of the key features of the Aiviq platform that resonates with our clients”
About Aiviq: Aiviq is a data-driven fintech platform with industry-leading domain expertise at its core. We turn disparate client investment information into enterprise-wide datasets that help you define winning market strategies, grow your businesses profitably and gain an edge over the competition.