Wilshire Indexes turns to Alveo’s DaaS for corporate actions data optimisation

Online lending can be a more profitable asset than stocks, bonds and real estate, according to the latest research by the Gillmore Centre for Financial Technology. The research revealed that the newly developed framework of general characteristics-based portfolio policies (GCPP) can achieve an average rate of return of 8.86 to 13.08 percent each year in an extensive data set of online loans collected from LendingClub. This significantly outperforms an equal-weight portfolio of loans. The paper ‘Gaining a Seat at the Table: Enhancing the Attractiveness of Online Lending for Institutional Investors’ recommends that institutional investors “gain a seat at the table” when it comes to online lending, warning that investors may miss the boat due to a lack of awareness and understanding of the asset class. Ram Gopal, Director of the Gillmore Centre for Financial Technology at Warwick Business School and Co-Author, said: “Online lending is in danger of slipping by and costing institutional investors, in particular, a lot of money. Limited awareness of this emerging asset and the accompanying lack of understanding in industry, coupled with stringent government regulations, has led to this high potential investment flying under the radar.” “Online lending through a GCPP framework can have a transformative impact on institutional investors and unlock business growth for many organisations. Industry leaders and asset platforms should work together to ensure that businesses and investors collaborate on appealing investment opportunities that provide high pay-offs, underpinned by the research of world-class institutions that can lead innovations in emerging opportunities such as online lending.” Morris Strub, Associate Professor at the Gillmore Centre for Financial Technology and Co-Author, commented: “The absence of effective frameworks for investment in online loans and other new asset classes continues to complicate the investment landscape. But the Gillmore Centre’s development of GCPP can help sophisticated investors to harness the potential of new asset classes emerging from Financial Technology. Our framework can be applied not only for investment on online lending platforms, but also for traditional assets such as stocks or bonds. The paper was authored by a quartet of leading university academics including Ram Gopal, Director of the Gillmore Centre for Financial Technology at Warwick Business School; Xiao Qiao, assistant professor at the School of Data Science at the City University of Hong Kong; Moris Strub, associate professor at the Gillmore Centre; and Zonghao Yang, PhD student at the City University of Hong Kong.

Wilshire Indexes, a premier global benchmark platform, and Alveo, a top-tier provider of cloud-based market data management services, have embarked on a partnership.

The essence of the collaboration is to leverage Alveo’s Data-as-a-Service (DaaS) solution for managing and enhancing corporate actions data quality, a pivotal aspect for Wilshire Indexes.

Wilshire Indexes is a renowned global benchmark platform that offers unprecedented flexibility to institutional investors, asset managers, and retail intermediaries. It revolutionises how investors use benchmarks to fulfil their objectives through the acclaimed FT Wilshire Index Series.

Alveo stands out as the industry frontrunner in market data integration and analytics for financial services. They are deeply vested in optimising data flows for a seamless user experience, facilitating clients to readily access credible data, ensuring maximised data ROI. Their services streamline the process of data onboarding, preparation, and validation across various financial functions.

Alveo’s DaaS is designed to source, cross-check, compare, and validate corporate actions using various data vendors. When inconsistencies arise, Alveo’s offering investigates the root cause and implements solutions. Consequently, Wilshire Indexes will use this polished feed for its index solutions, spanning approximately 30 corporate action types influencing security prices.

Wilshire Indexes works in tandem with Wilshire’s myriad of financial services, including investment management, consulting, OCIO, and alternative assets, collectively identified as Wilshire Advisors.

Wilshire Indexes Chief Operating Officer Paul Grimes said, “Having access to multiple sources of corporate actions data and a data quality management service is critical to developing our solutions to meet the new needs of global investors. We are pleased to work with Alveo to enhance our corporate actions data and further strengthen our efforts to transform the way investors use benchmarks to realise their objectives.”

Alveo CEO Mark Hepsworth said, “We are delighted to welcome Wilshire Indexes to Alveo’s growing customer base. Wilshire Indexes is a highly innovative, data-driven firm that – like all of our customers – aims to make the most of its market and reference data. Wilshire Indexes uses a wide range of global corporate actions and we have worked closely with their operations team during implementation to improve automation and processes. Timely awareness and accurate corporation actions are essential to index providers and we are very pleased to be delivering the service.”

Keep up with all the latest FinTech news here

Copyright © 2023 FinTech Global

Enjoying the stories?

Subscribe to our daily FinTech newsletter and get the latest industry news & research


The following investor(s) were tagged in this article.