Data is at the heart of investment decision making, yet the investment industry suffers from a lack of data standardization. Every firm has its own mechanisms to derive value from data, often relying on large spreadsheets and redundant processes. In recent years, industry leaders have begun propagating open standards for defining fund and investment data[1], but adoption remains slow as legacy systems do not always support these formats.
The major barriers to empowering your data are as follows:
1. Data uniformity
The major barrier to data-led innovation is simply that data is not stored and distributed uniformly within organizations. It is necessary to efficiently aggregate and dissect millions of records to leverage data effectively. Further, the data must be structured in a simple and intuitive way, enabling complex analytics that provides comprehensive organization-wide insights.
Bond180’s DMS application uses ElasticSearch technology to enable our clients in their data-led initiatives. Through our technology, we can rationalize portfolio, holdings, transaction, market and security master data. Bond180 leverages this data using proprietary models to empower our clients via our DMS interface to understand the market opportunities that best fulfil their portfolio needs.
2. Making data-actionable
Whilst rationalization of data is key, the real power of data-led solutions is in making data-actionable. What is the benefit of rationalizing your data if you cannot employ it effectively for your own commercial purposes? Data networks are often prevented through concerns around trust and security. But maximizing network effects is the key to empowering your data.
Through our 180Match service, we make data-actionable by enabling the sell-side to lead transactions in a compliant way. We use state of the art encryption to maintain client data segregation and ensure complete anonymity unless permissioned access has been granted. This allows our clients to use their data, helping them to access suitable investment opportunities to maintain their edge.
3. Bridging legacy and new technologies
Another significant barrier is connecting data repositories contained in legacy systems with modern systems. Increasingly data-led initiatives are being facilitated by nascent technologies such as DLT. If the future-state of financial services is decentralized in some form, it will be integral for customers to plug their data into these networks, but the state of DLT is in rapid development. Deciphering the increasingly complex and fragmented landscape is a major challenge; it feels very difficult to commit to anyone provider of tech services when the future winners of the innovation race remain unclear.
Bond180 have thus created a suite of services, allowing our clients to leverage data from the DMS and to connect to relevant industry networks. Using our proprietary technology, Bond180 can connect to both legacy technology systems and emerging digital networks, all using the highest enterprise standards of security. Through our standardized set of protocols, clients can connect via a data-bridge to emerging digital networks. Our solution leverages API and cloud infrastructure offering a seamless user experience and sophisticated network design.
Future state – Digital assets
Through these networks, there is increasing interest in digital assets. Digital assets offer a compelling use case through which data is made actionable owing to their efficiency and flexibility. We believe the adoption of digital assets is inevitable but will take time. Accordingly, we believe our clients will take comfort in the knowledge that they are positioned to act when needed. To ensure readiness, we have thus also developed digital asset issuance, monitoring, and administration capabilities. Although our solution is currently showcased using R3’s Corda network, we recognize that interoperability will be a key requirement in the future. Ultimately, flexibility and connectivity will be critical to ensure our clients stay ahead of the curve.
Connect with us to discuss how we can unlock your data and can give you access to emerging data and technology networks.
[1] Openfunds, ‘Current Version’, Openfunds, accessed 2 August 2020, https://openfunds.org/fieldmenu/current-version/.
