Integrating environmental, social and governance (ESG) performance indicators as part of the investment process presents unique opportunities for differentiation. But at the same time, it can be complicated from the data management perspective. Asset, investment and fund managers must navigate these challenges as investor expectations are increasing while leading practices are emerging, and ESG and climate disclosures and regulations evolve. Handling this complexity effectively requires managing data well and providing easy-to-use analytics. This involves skillfully combining different types of market and ESG data to create a unified and comprehensive picture. However, effective strategies extend well beyond mere risk management and compliance.
The challenge of data integration
Are you still manually preparing, collating, and aggregating information about your investment products or model portfolios? In today’s market, engaging customers requires not only more descriptive data but also improved experiences involving predictive and sometimes even prescriptive elements. Doing this well typically involves aggregating data from multiple sources and finding innovative ways to present this data visually.
Relying on manual processes based on spreadsheets can lead to operational vulnerabilities; not only do the errors occur, causing service disruptions, but it can also result in the communication of inaccurate data. Moreover, when a key individual departs, the knowledge needed to manage these manual processes often leaves with them, further increasing the operational risk.
Streamlining operations with scalable solutions
The solution lies in establishing a central hub for your market and ESG data as well as associated analytics. This hub should act as an integration point for all pertinent data vendors/sources, offering user-friendly APIs to ensure consistent and robust distribution across various applications and channels. Moreover, this centralised hub should possess the capability to aggregate and enrich the data effectively.
How often have you wished you could adapt or modify data from third-party sources to your own specific context and requirements? With suitable technology you should be able to ingest your own data and combine it with the external sources to achieve the best fit possible to your applications.
This is where the analytics part comes in. Data alone, is often only descriptive in nature, whereas more engaging solutions normally require predictive elements too. With the right integrated analytics support, such a central “home” for your data will be equipped to meet the evolving demands of the industry.
At Kidbrooke, we offer a state-of-the-art financial data aggregation and enrichment solution that integrates smoothly with numerous data sources (LSEG/Refinitv, Morningstar, MSCI, Bloomberg and SIX to name a few) delivering a unified view for investment product selection and instrument data. Our solution supports various methods of data delivery, from APIs and file transfers to interactive user interface widgets, fully customisable and possible to integrate with your own look and feel. It enables swift and effective understanding and analysis of both your model and customer portfolios. Furthermore, you have the flexibility to develop bespoke metrics and performance indicators, enhancing your financial analysis and decision-making processes.
The KidbrookeONE platform empowers financial institutions to tackle their data challenges and cultivate a setting that promotes innovation and operational efficiency. Delivered as a service, unifying data and analytics capabilities, allows you to focus on the application and use cases and build upon a solid foundation rather than starting from scratch each time a new metric or analysis is required. You can also be rest assured that we are well-versed in the regulatory and compliance demands specific to the finance sector and as such can provide you with well-rounded knowledge and advice connected to your vision and goals.
Our platform manages large data volumes effortlessly, ensuring scalability as data needs expand. Additionally, we implement built-in data quality checks and validation processes, minimising error risk and enhancing overall data integrity. Crucially, our platform allows for moving away from some of the manual Excel-based tasks, freeing up countless hours for more strategic activities.
Efficient and prompt distribution of financial data, including the ESG performance details on instruments and products, is crucial for crafting engaging omnichannel experiences. This demands robust and scalable data pipelines that are adept at processing, aggregating, and transforming all required types of financial data. Financial institutions are tasked with the formidable challenge of maintaining the integrity and consistency of data aggregation while compiling and summarising information from various sources.
Kidbrooke’s cutting-edge solutions in practice
A significant use case of Kidbrooke’s solution is in aggregating sustainability data for Max Matthiessen, one of Sweden’s leading insurance brokers. Kidbrooke’s platform efficiently integrates the necessary data sources, considering fund managers’ preferences for presenting information. Specifically, the solution compiles sustainability performance data, aligning it with the customers’ mutual funds. It supports the generation of fund-level sustainability Key Performance Indicators (KPIs) by supplying detailed ‘look-through’ data that matches the customers’ risk and sustainability profiles. In essence, KidbrookeONE enables Max Matthiessen to articulate its fund offerings more transparently to both existing and prospective investors.
Embracing the future of financial data management
The prevailing vision for the future of the financial sector is undoubtedly one of streamlined efficiency and improved customer experiences. Leveraging ESG data effectively can drive significant improvements in transparency, risk assessment, and investor engagement, ultimately enhancing corporate reputation and investor trust.
Moreover, fostering innovation in the financial sector through the responsible utilisation of aggregated data is critical. By structuring the information from external and internal sources, financial institutions can not only comply with evolving regulatory demands efficiently but also innovate in ways that lead to more sustainable business practices. This responsible use of data facilitates the development of new financial products and services that meet the growing demand for sustainable investment options, reflecting the preferences of a more ethically conscious consumer base.
The impact of such innovations stimulates a more dynamic, efficient, and consumer-focused industry. This evolution is pivotal as it benefits all stakeholders in the financial ecosystem, from individual investors and corporate clients to regulatory bodies and the broader community. As the sector becomes more adept at utilising these advanced data aggregation tools, it will continue to grow in sophistication, leading to a more robust, responsive, and sustainable financial landscape.
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