Golden Copy: Long Road to Disruption
Will the industry's data management advances stay confined to merely upgrading current methods?
In this column in recent weeks, I've considered the application of a couple different newer technologies to the data management realm—"regtech" and artificial intelligence. Remarks by Jeff Zoller, chair of the International Securities Association for Trade Communication (ISITC), at that organization's annual conference this past week (and in a follow-up interview), highlighted just how far the financial industry may still have to go to completely replace data operations systems with better methods.
Zoller cited and elaborated on a categorization of technology efforts by digital analyst Brian Solis, who studies the effects of technology on business in his role with Altimeter Group. Solis lists three types of technology changes: iteration—improvements on how existing processes work; innovation—the use of new processes; and disruption—the use of new processes that make existing processes obsolete.
Zoller sees financial industry operations as being somewhere "right in the middle" between iteration and innovation. "We're not making the old ways obsolete," he says. "We're trying to figure out how to take the old things and just make them better and change them to some degree. Firms are still trying to take in traditional sets of investment data and use them in smarter ways."
Predictive capabilities, based on data, applied to the design of investment products and strategies, choosing investment managers, and determining institutional investment managers' behaviors with handling cash flows and growth, undoubtedly can be greatly improved through machine learning or artificial intelligence. Doing so would see the industry doing even more than just innovation—edging toward disruption by potentially making old prediction methods obsolete.
Unstructured data, such as investment behaviors and patterns, the tone of commentary that industry analysts offer, and social and economic behavior, if harnessed, can also support disruption—going beyond innovation, as Zoller points out. Overall, Zoller says, he isn't so surprised that the industry can be slow to react to potentially disruptive technology capability such as deriving insight from consumer behavior, but he sees it as "something we need to pick up the pace on."
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Data Management
Kimsey debuts ‘Who bought what’ dataset to help vendors target sales
Kimsey Consulting’s latest report breaks down reported industry spend by client type, product type, and geography to help suppliers and investors pinpoint future sources of demand.
IBM report finds ‘shadow’ data significant contributor to data breaches
As AI and cloud take on greater importance in the capital markets, firms need to consider their threat impact zones.
Bloomberg adds AI earnings summaries to Apple Vision Pro app
The vendor continues to add content and functionality to its Bloomberg Pro for Vision app, which sits at the convergence of spatial and mobile computing.
Waters Wrap: After CrowdStrike crisis, will anyone learn?
Several bank and hedge fund sources tell Anthony that while there’s plenty to be learned from the CrowdStrike bug, some will more than likely forget those lessons in a few weeks’ time.
Insurers deny cyber premiums are rising
Contrary to banks’ complaints, underwriters and brokers claim current market for policies is soft.
Cutting through the hype surrounding the FDTA rulemaking process
A bill requiring US regulators and institutions to adopt a machine-readable data framework for reporting purposes applies to entity identifiers, but not security identifiers, in a crucial difference, writes Scott Preiss, SVP and global head of Cusip Global Services.
The IMD Wrap: Quality drivers—the sticks and carrots accelerating the data quality race
Like a Formula One Grand Prix, data management is a race that can be won or lost. And just as each race is part of a larger F1 championship that pays large sums of TV money to the winning team, winning or losing one race can contribute to winning or losing an endgame with much more at stake.
Northern Trust offers internal fund accounting, data tools to clients
Regulations and a mandate to enhance quality and transparency in a bid to improve the investor experience are pushing buy-side firms to have more oversight of their third-party providers.