Advantages of using BI in investment management firms
CFOs know that a company’s financial health depends on accurate, up-to-date data. BI can help your organisation remain competitive and financially stable by providing fast access to detailed cash flow insights, expense management optimisation opportunities and the ability to make informed decisions about costs and profitability.
Business intelligence has become a critically-important facet of successful operations for finance companies of late because today’s ever-changing markets leave little scope for finance companies to lag in terms of delivering value.
BI is also has huge benefits for the finance team. Once they get used to consuming BI-driven insights, finance professionals become more efficient at their jobs and adept at knowing what actions promote growth.
Below we have listed some of the specific advantages of using BI, as well as those specific to Investment management firms:
- Time to implement new products: Insights from BI help understand customer needs and stay ahead of the competition by implementing new products to suit market trends, quicker.
- Target audience: trends show younger people are drawn to investments to secure their futures. Bi can help narrow down target audiences to implement new products, or repurpose old and effective products for the younger generation.
- Product performance: What products are performing vs under performing (BI can give Insights on the number of clients investing per product month on month, year on year, as well as revenue growth through assets under management for those products).
- Fund performance:
- What funds are performing better than others (ability to compare).
- Top performers over periods.
- Analysing risk of investment (high, medium, or low).
- Investment Growth across different periods (short term and long term)
- Product Packaging: new products can be packaged with funds at the right risk level and growth opportunities.
- Reporting:
- Simplified stakeholder reporting with the ability to drill down to the details.
- Cleaner and more informative Customer portal dashboards showing product performance of client investments.
- Effective intermediary reporting to enable quicker customer servicing and marketing.
Faster, more accurate reporting and data analysis, higher data quality, better employee satisfaction, decreased expenses and increased revenues, and the capacity to make better business decisions are just a few of the numerous advantages that firms may reap after incorporating BI into their business models.
Implementing a holistic BI, analytics, and data management strategy supported by best-in-class technology can be what enables firms to turn data into a competitive differentiator.
We, at Digiata, have seen the profound impact that BI can have on our clients in the investment, wealth and asset management markets. Providing accurate, up-to-date insights on the products that are being sold to the market as well as the wealth of underlying data that makes up the products is a potent mix that allows our clients to make decisions quicker and tweak their products to keep up with market expectations. In 2024, we expect the number of BI and reporting projects to increase significantly and we are excited to bring the power of BI to our clients. For more information on our BI and Reporting offering, click here.
