Harnessing the power of financial data aggregation is becoming increasingly crucial in the investment world, particularly when integrating environmental, social, and governance (ESG) performance indicators.
Kidbrooke, a unified analytics platform for investment and wealth management, recently delved into the power of financial data aggregation.
This process presents unique opportunities for differentiation but also brings significant data management challenges. Asset, investment, and fund managers must navigate these complexities as investor expectations rise, best practices emerge, and ESG and climate-related disclosures and regulations evolve. Managing this effectively requires robust data handling and user-friendly analytics to create a comprehensive market and ESG data picture, it said. Effective strategies extend beyond risk management and compliance.
In today’s market, investment professionals often face the challenge of manually preparing, collating, and aggregating information about their products or model portfolios. Engaging customers now requires not only descriptive data but also improved predictive and prescriptive experiences. Achieving this typically involves aggregating data from multiple sources and presenting it innovatively.
Manual spreadsheet-based processes can lead to operational vulnerabilities, causing errors, service disruptions, and inaccurate data communication. Moreover, when key individuals leave, the knowledge required to manage these manual processes often goes with them, increasing operational risk.
The solution lies in establishing a central hub for market and ESG data and associated analytics, Kidbrooke stated. This hub should integrate all relevant data vendors and sources, offering user-friendly APIs to ensure consistent and robust distribution across various applications and channels. Additionally, it should have the capability to aggregate and enrich data effectively.
Financial institutions often need to adapt or modify data from third-party sources to fit their specific context and requirements. Suitable technology allows them to ingest their own data and combine it with external sources, providing the best possible fit for their applications. This is where integrated analytics support becomes crucial. Engaging solutions require predictive elements, and a central hub equipped with such analytics can meet the evolving demands of the industry.
Kidbrooke offers a state-of-the-art financial data aggregation and enrichment solution that integrates seamlessly with numerous data sources, including LSEG/Refinitiv, Morningstar, MSCI, Bloomberg, and SIX. This unified view supports investment product selection and instrument data. The solution provides various data delivery methods, from APIs and file transfers to interactive user interface widgets, customizable to match clients’ branding. It enables swift and effective understanding and analysis of model and customer portfolios, allowing for the development of bespoke metrics and performance indicators to enhance financial analysis and decision-making.
The KidbrookeONE platform empowers financial institutions to address data challenges and foster innovation and operational efficiency. Delivered as a service, it unifies data and analytics capabilities, allowing institutions to focus on application and use cases, building on a solid foundation rather than starting from scratch with each new metric or analysis. Kidbrooke is well-versed in the finance sector’s regulatory and compliance demands, providing comprehensive knowledge and advice aligned with clients’ goals.
Kidbrooke’s platform handles large data volumes effortlessly, ensuring scalability as data needs grow. It incorporates built-in data quality checks and validation processes, minimizing error risk and enhancing overall data integrity. Importantly, it enables the transition from manual Excel-based tasks, freeing up valuable time for more strategic activities.
Efficient and prompt distribution of financial data, including ESG performance details, is essential for crafting engaging omnichannel experiences. This demands robust and scalable data pipelines adept at processing, aggregating, and transforming all types of financial data. Financial institutions face the challenge of maintaining data integrity and consistency while compiling and summarizing information from various sources.
A notable use case of Kidbrooke’s solution is its integration with Max Matthiessen, one of Sweden’s leading insurance brokers. Kidbrooke’s platform efficiently integrates necessary data sources, considering fund managers’ presentation preferences. The solution compiles sustainability performance data, aligning it with customers’ mutual funds, and supports generating fund-level sustainability Key Performance Indicators (KPIs) by supplying detailed ‘look-through’ data matching customers’ risk and sustainability profiles. KidbrookeONE enables Max Matthiessen to transparently articulate its fund offerings to existing and prospective investors.
The future vision for the financial sector emphasizes streamlined efficiency and improved customer experiences. Leveraging ESG data effectively can drive significant improvements in transparency, risk assessment, and investor engagement, enhancing corporate reputation and trust. Innovation in the financial sector, through responsible data aggregation, is crucial. Structuring information from external and internal sources enables financial institutions to comply with evolving regulatory demands efficiently and innovate sustainably.
Such innovations foster a more dynamic, efficient, and consumer-focused industry. This evolution benefits all stakeholders in the financial ecosystem, from individual investors and corporate clients to regulatory bodies and the broader community. As the sector becomes more adept at utilizing advanced data aggregation tools, it will grow in sophistication, leading to a more robust, responsive, and sustainable financial landscape.
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