In the ever-evolving world of financial services, the integration and management of diverse financial data stand as a cornerstone for innovation and customer satisfaction.
Banks, insurers, and investment managers are increasingly facing the challenge of aggregating a wide array of financial information. This process is vital not only for crafting personalised customer experiences but also for enabling financial professionals to construct portfolios that adeptly meet client needs.
Kidbrooke, which has developed the Financial Simulation Engine, recently delved into the common hurdles associated with financial data aggregation and offers strategic insights to navigate these challenges effectively.
The financial sector’s traditional conservatism is being tested by the growing demands of consumers, tighter regulatory frameworks, and diminishing margins, prompting a shift towards automation. The envisioned future of financial services hinges on efficient data management and the ability to perform complex calculations seamlessly within digital journeys, it said. These operations require sophisticated data pipelines capable of handling diverse data types, including market dynamics and financial time series. Integrating legacy data into modern applications adds another layer of complexity, making the transition to contemporary data standards both costly and challenging.
The advent of sustainability reporting further complicates data aggregation efforts, Kidbrooke added. With the European Union setting the pace for standard enforcement, financial institutions are tasked with ensuring the integrity and consistency of data from myriad sources, often relying on manual processes. The need for precise sustainability performance indicators across different asset classes underscores the importance of data readiness and the customisation capabilities of financial institutions.
Kidbrooke has emerged as a pivotal player in addressing these data challenges, drawing on years of experience in financial innovation. The company’s recent development, a financial data aggregation and enrichment solution, promises to revolutionise the way financial information is integrated and managed.
This solution boasts a normalised API that simplifies access to a vast range of data sources, serving as a reliable reference for investment product data and available investment avenues. It is especially pertinent given the regulatory emphasis on data resilience and robustness, as highlighted by initiatives like the Digital Operational Resilience Act (DORA).
The solution’s ability to aggregate, enrich, and transform data according to specific use cases facilitates diverse delivery mechanisms, from APIs to comprehensive data lakes. This enables rapid analysis of models and customer portfolios, fostering the creation of custom metrics and indicators. By moving away from manual, Excel-based processes, financial institutions can mitigate errors and reduce regulatory and operational risks, freeing up valuable time for more strategic activities.
A prime example of the solution’s application is its role in aggregating sustainability data for Max Matthiessen, one of Sweden’s largest insurance brokers. By consolidating various data sources and aligning them with customer preferences, Kidbrooke’s platform streamlines the calculation of sustainability KPIs for mutual funds, enhancing scalability and operational efficiency.
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