Asset managers are losing business over data

Survey reveals asset managers do not value the use of data and are losing business.

Over a quarter of investment managements firms claim to have lost business due to poor use of data, according to a new survey. 

The survey found that firms are struggling with the use of data as an asset, with 27% saying they had missed out on business opportunities due to its poor use.

Only 11% of respondents felt data was used ‘very well’ for strategic decision making, while 31% said it is not being used well, if at all.

Osney Media and BackBay Communications conducted the survey and asked 113 respondents across all areas in investment management.

The survey described a ‘data glass ceiling’, in which businesses are struggling to recognise the value of data.

The majority of companies are trying to improve the availability and use of data, with 96% introducing or planning to introduce a data governance framework.

However, over a quarter of respondents said senior management did not recognise the value of data. 

Head of content at Osney Media, Jonathan Wiser said: “As the sheer number of initiatives in progress suggests, data governance is one of the key areas firms are looking at to drive those improvements, but there’s a perception that senior management don’t fully engage with or understand the potential of data as an asset.”

As well as issues with the use of data, the survey also highlighted the need for improvements when meeting client requirements.

A fifth of respondents said they regularly lose out on business as their products do not meet the needs of prospects, and 21% felt their marketing and communication activities could be more relevant.

Bill Haynes, chief executive officer at BackBay Communications concluded: “This survey highlights some good practices but there’s room for improvement through closer collaboration and communication between departments, a greater client focus and better use of data throughout the organisation.”