Finding ‘the One’ is life-changing. Very few can argue with that. The One gets where you’re coming from, understands your needs and will support you in reaching your full potential.
And when you’re an asset management firm, the same certainly applies when it comes to finding that ‘One’ data management service that meets all your needs.
But with the numerous options out there in the current market, finding and picking the right service can be daunting – after all, your firm’s operational efficiency and your overheads becoming more manageable are on the line. And making the wrong choice is not only time-consuming but also expensive!
But it seems the pressure is already on for asset managers to find the One.
Increasing customer demands along with budgetary and regulatory pressures are forcing firms to find ways of updating their back and middle office data management systems, according to research from PWC.
Choosing a fund data expert that fits your business perfectly can save you both time and stress – and free up your employees from the laborious chore of data management.
But the solutions on the market, although plentiful, are far from homogeneous so don’t assume a one-size-fits-all approach.
Here are some things to consider before you choose.
What can they do for YOU?
Because of the complexity that faces asset managers in terms of data management – it is important to find a service provider that can get involved with every step of the process you need them to. Whether this be collecting, validating or distributing your data, make sure you understand exactly what each provider has to offer.
For example, you might find a company that create beautiful data dissemination tools - but can they collect and validate all of your data? If your problem is multi-faceted then a one-trick pony may not be the best value solution.
Equally, if your internal process is efficient in one area but you need help in another area, it is important that the solution you choose is flexible so that you only pay for what you need.
Are they experts?
Make sure your provider is an expert in your field. You want to partner with someone who understand the business and regulatory climate you operate in - as well as understanding what you need without lengthy explanations and back and forth email chains.
Firstly, discover whether they are thought leaders within the industry. Read their blog posts and news pages of their corporate websites, find out whether they are mentioned in the press or have any views on the issues you face.
Secondly, research the company’s leadership team so that you have a better idea of the background and experience within the company. Even if the company is relatively young the leadership team may have a wealth of expertise behind them. Websites, especially social media like LinkedIn, are a good place to find professional biographies.
Are they long-term?
Where is the product going? How will they keep up with advances in the market? The worst thing for your firm would be to sign into a lengthy contract for a great product only to find that in a few years’ time it is obsolete.
Take the music retailer HMV, for example. While brands like Apple and Amazon have led the crowds towards online consumerism, brands like HMV spotted the Iceberg that is online consumer behaviour too late and couldn’t manoeuvre their business plan in time.
When you meet with perspective companies be sure to ask what they envision for the future of the market and how they see their product developing to adapt to technological advances. This way you won’t have to go through the whole process of choosing another partner in a year’s time.
Do they provide ongoing support?
Data systems are complex and you are bound to have queries and questions about the product(s) you have bought. It’s all well and good finding a good solution that ticks all the boxes, but what can make or break partnership is the support you are provided with after hands are shaken.
Make sure you understand their internal process for dealing with queries or customer support calls. How long will it take for your queries to be picked up and resolved? This can impact the efficiency of your internal team as well as the quality of the relationship your staff have with the service you’ve chosen.
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