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The asset management business is highly complex and constantly evolving, with the most successful firms finding ways to anticipate the needs of a changing and diverse clientele. Most of these enterprises are far from optimizing the performance of their assets. Asset managers are also under great pressure to make intelligent strategic investments using accurate data insights. But client interactions and third-party vendor conversations are buried under a mass of unstructured communications data.

For asset managers to stay at the forefront of market trends, investor habits, government regulations, and new product development requires the asset management firms to rely on extremely sophisticated market intelligence platforms.

Artificial intelligence (AI) has disrupted most industries in recent years, and the financial services sector is no exception. A sizable proportion of asset management companies globally are now using AI to run trading and investment platforms, and transform the workflows of asset managers, analysts and data scientists.

Operational Efficiency and Data Effectiveness

Asset management firms are required to be more cost sensitive in the current operating landscape. Data quality is important as making fewer errors reduces operational risk and protects the end clients. 

In order to capture all of the data around specific companies, services, products, etc, asset managers search through hundreds of sources and consistently monitor the market. Further, the velocity at which new data is generated is constantly increasing as more digital tools are being introduced in the finance space, making human error during research inevitable. 

The results of inaccurate or out-dated data can lead asset managers to make the wrong decisions and cost an asset management firm thousands to hundreds of thousands in revenue depending on the investment. 

Relationship intelligence developed to address these critical problems. It leverages AI and enables asset managers and analysts to extract large quantities of information, analyze them quickly and turn into actionable insights.

Management of the Portfolio

In order for asset managers to identify clear next steps to take with their portfolios, they need to have a well-rounded view on the company, its products and/or services, its interactions with competitors and consumers, and more. Any negative or positive news, review, social post, etc. can impact a company’s financial direction.

Asset managers need to invest in relationship intelligence to generate actionable client insights and thereby improve their sales and marketing efforts. Data extracted from a relationship intelligence platform can be compiled in a way that asset managers and analysts can form relevant and valuable insights. These insights can be used to make strategic decisions and guide them for building a stronger portfolio that can generate higher returns.

Trading processes: minimizing transaction costs and market impact

Analyzing data to generate investment ideas is a core part of the investment process, and equally crucial is the implementation of the idea through efficient trade execution. Additionally, the number of digital touchpoints in an investment lifecycle has increased, generating a vast dataset for trading teams to analyze in order to minimize costs.

Relationship intelligence can assist analysts to keep track of these touchpoints and make suitable recommendations on which counterparties or venues would result in better trading performance.

About Mitibase

Asset management firms that know how to utilize relationship intelligence to analyze data will remain competitive and experience the results of drawing more accurate insights. It enables the firm to collect and summarize all of the necessary information from a large volume of data and reveal potential next steps for asset managers to implement in their investment decisions.

Mitibase is a relationship intelligence platform that enables asset managers, analysts and data scientists at financial organizations to easily uncover actionable insights from structured as well as unstructured data. With Mitibase, you can find additional value in your data, and make better informed-decisions faster and more accurately.
For more information on how we can accelerate your organization’s revenue stream, request a demo today: https://www.mitibase.com/request-a-demo/

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