Navigating ESG integration presents unique opportunities for differentiation but also brings challenges from a data management perspective.
Kidbrooke, a unified analytics platform for investment and wealth, recently explored the power of financial data aggregation.
Asset, investment, and fund managers must adapt to increasing investor expectations, emerging practices, and evolving ESG and climate disclosures and regulations. Effectively managing this complexity requires combining various types of market and ESG data to create a unified picture. This involves strategies that go beyond risk management and compliance.
Many managers still manually prepare and aggregate information about their investment products or model portfolios. In today’s market, engaging customers requires more descriptive data and improved experiences, often involving predictive and prescriptive elements, Kidbrooke said. This typically involves aggregating data from multiple sources and presenting it innovatively. Relying on manual processes can lead to errors, service disruptions, and communication of inaccurate data. When key individuals leave, the knowledge needed to manage these processes often departs with them, increasing operational risk.
The solution lies in establishing a central hub for market and ESG data, acting as an integration point for all pertinent data sources. This hub should offer user-friendly APIs for consistent data distribution across applications and channels. It should also be capable of effectively aggregating and enriching the data. With the right technology, institutions can adapt third-party data to their specific needs, combining it with their own data for the best fit.
Kidbrooke offers a state-of-the-art financial data aggregation and enrichment solution. Its platform integrates smoothly with various data sources, delivering a unified view for investment product selection and instrument data. It supports various data delivery methods, from APIs and file transfers to interactive user interface widgets. This enables swift and effective analysis of both model and customer portfolios. The KidbrookeONE platform empowers financial institutions to tackle their data challenges and promotes innovation and operational efficiency.
The platform manages large data volumes effortlessly, ensuring scalability. It includes built-in data quality checks and validation processes, minimizing error risk and enhancing data integrity. By moving away from manual Excel-based tasks, countless hours can be freed up for more strategic activities. Efficient distribution of financial data, including ESG performance details, is crucial for crafting engaging omnichannel experiences. This demands robust data pipelines adept at processing and transforming financial data.
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 integrates necessary data sources, considering fund managers’ preferences for presenting information. The solution compiles sustainability performance data, aligning it with customers’ mutual funds. It supports generating fund-level sustainability Key Performance Indicators (KPIs) by providing detailed ‘look-through’ data matching customers’ risk and sustainability profiles. KidbrookeONE enables Max Matthiessen to articulate its fund offerings more transparently.
The future vision for the financial sector involves streamlined efficiency and improved customer experiences. Leveraging ESG data can drive improvements in transparency, risk assessment, and investor engagement, enhancing corporate reputation and investor trust. Innovation through responsible data use is critical. Financial institutions can comply with regulatory demands efficiently and innovate to meet the demand for sustainable investment options. This evolution benefits all stakeholders, leading to a more robust, responsive, and sustainable financial landscape.
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