There are changes coming about in the asset servicing industry, and “it’s all about data”, according to Steven Wolff, president and CEO of CIBC Mellon.
Data can have an effect on client experience, client confidence and risk management, and aid asset managers in making sound investment decisions. However, many firms are only just beginning to consider data as a part of their growth strategies.
Samir Pandiri, executive vice president and CEO of asset servicing at BNY Mellon, added that the use of data in this way is very much ”in its infancy”, adding that no one firm has perfected it yet.
BNY Mellon, for example, provides macro market data, transactional data relevant to the specific asset manager, core and critical data, plus additional information that has the potential to inform trading decisions and strategies, Pandiri said.
Historically, access to such data was customised, but new platforms have allowed for building of one platform that can be expanded to several asset managers through an application programming interface, and accessed individually and on demand.
This method, Pandiri said, “allows you to scale the information without driving up the costs”.
Wolff also noted the increasing importance of data management as risk management. He added that this risk management must extend to third-party vendors, saying: “Your vendor is you.”
He added that the regulatory and risk burden in this respect “continues to amplify”.
Finally, Pandiri suggested that the financial services business models are shifting, moving from a focus on process to a focus on knowledge—knowledge that is powered by data.
Global custodians carry significant data that can be helpful to their clients “in terms of where they are relative to their peer group”.
Utilising this data to help clients make business decisions and to drive more effective processes is “where the value-add will really be,” Pandiri concluded.
