Ask any middle office team what keeps them awake at night and, nine times out of ten, they will cite one overriding issue: data management.
Ask any asset manager about their dream system for the middle office and the response would typically include three words: fast, accurate and efficient.
For obvious reasons, many of the largest asset management firms struggle with massive data volumes, silos and processes.
Automating process and using data just once - but for many purposes - is increasingly seen as the best way for asset managers to respond to the demand for 24/7 reporting capability.
The asset management industry will continue to face strong headwinds in the years to come, with the need to change the way it operates fundamentally important.
The middle office was once tasked solely with processing front office data. Not anymore. Today middle office teams are not only expected to feed into execution and settlement processes.
We all know the average middle office is inundated with vast amounts of data. But in today’s competitive market, simply processing large volumes is not enough anymore.
Effective management of massive quantities of data pose a significant challenge to asset management firms. Yet given the right tools, middle offices can add real value to their organizations.
The asset management industry is under intense pressure to handle more data, more often, and with complete transparency.
The middle office will remain fundamental to the effective operation of asset management businesses but it will also face fundamental challenges.