Investment Data & Technology Summit 2024 Key Takeaways

The Investment Data & Technology (IDT) Summit 2024 brought together industry leaders and experts to discuss emerging trends and best practices in the investment management space. As the investment landscape evolves, organisations are increasingly focusing on improving operational efficiency, embracing new technologies, and enhancing data management strategies.

This year's summit was attended by AlphaCert's CEO Phil Pietersen, Executive General Manager Daniel McCarthy, and General Manager for Australia Mark MacLeod. The Summit emphasised the importance of simplifying operations, integrating advanced technologies like artificial intelligence (AI), and establishing effective data management systems to address the complexities of multi-asset fund management. 

Explore the key takeaways from the summit and its implications for AlphaCert’s role in driving industry efficiency and innovation.

1. Simplifying operating models

The Summit focused on the need to simplify investment management operating models to gain efficiency and cost-effectiveness by replacing over-convoluted spreadsheets with scalable SaaS solutions. “Simplify, Optimise, and Innovate” evolved as a guiding principle for streamlining operations while maintaining flexibility and scalability.

Strengthening data capabilities was identified as key. Cloud-based solutions will allow organisations to simplify business operations, improve data accessibility, and reduce reliance on legacy systems.

By providing complex data integration and process automation solutions, AlphaCert helps investment management firms simplify their operations and integrate multiple data sources into a unified SaaS system. This approach will be increasingly important as organisations look for ways to reduce operational complexities and enhance decision-making through better data management.

2. AI and technology integration

Another major theme was the integration of AI into investment management systems. 

The summit highlighted the growing importance of AI in enhancing onboarding processes, document intelligence, data quality, and customer interactions through chatbots. AI also improves risk management and decision making through anomaly detection and predictive analysis.

AI is reshaping Software as a Service (SaaS) products affecting their data security risk profiles as organisations need to know where and how their data is being processed by AI engines. As organisations increasingly rely on SaaS platforms, AI’s role in automation and data analysis will continue to grow balanced by the need for data security.

3. Data management and governance

Investment firms need ‘Single Source of Truth’ solutions for data governance to be effective. As the volume and complexity of data grow, ensuring data accuracy and accessibility is paramount. The summit highlighted the two key challenges many firms face in managing private markets data and the importance of embedding data governance as a cultural practice.

Good data governance helps manage large-scale, diverse data sets while ensuring compliance with regulatory requirements. AlphaCert’s deep investment data management capabilities help clients tackle these challenges, especially given the criticality of e-data governance and security.

AlphaCert’s federated data models support multi-asset fund management, including private markets, addressing many of the operational data challenges faced by larger or complex investment funds. AlphaCert provides secure, scalable data management solutions in SaaS and cloud-based form with low cost of ownership.

4. Next-generation SaaS platforms

One of the notable discussions at the summit revolved around the use of next-generation SaaS platforms. While early adoption of these technologies can provide a first-mover advantage, it also comes with risks. Not all new technologies will succeed, and firms must develop exit strategies when implementing new SaaS solutions.

The key to success lies not in using new technology in traditional ways, but in leveraging it to unlock new efficiencies, capabilities and processes. We heard a lot about not using a hammer for every ‘nail’, for example, firms that adopt cloud-based platforms to replicate old processes will not get the benefits they should. The takeaway is clear: focus on utilising SaaS solutions that do more than replace outdated systems. Rethink your operating model around your SaaS solution. Be prepared to pivot often, as technology is evolving fast.  

As a cloud-based SaaS solution, AlphaCert offers much more than just a system upgrade. It empowers customers to optimise their operations and adapt to modern challenges. AlphaCert’s cloud-native architecture allows for flexibility, scalability, and ongoing updates, delivering real, long-term value for its customers.

Discover how AlphaCert's cloud-based SaaS solutions can help you unlock new efficiencies and capabilities.

 

5. IBOR and ABOR: Complementary Systems

One of the major challenges tackled was the coexistence of IBOR (Investment Book of Record) and ABOR (Accounting Book of Record) systems. While there is a growing push towards real-time IBOR solutions, the cost-benefit considerations vary depending on asset types. Private market assets, for instance, may not require real-time IBOR valuations.

By offering robust integration and business rules capabilities, AlphaCert helps customers maintain complementary data-views that provide the right type of data without unnecessary complexity or cost.

6. Multi-asset and whole-of-fund challenges

As investment portfolios become more complex, the challenges associated with managing multi-asset funds have become increasingly prominent. Many spoke to the difficulties with “look through” capabilities, especially for large funds, and the growing trend toward federated data models.

AlphaCert provides a unified view of diverse assets, funds, and portfolios. It streamlines data operations across custodians and optimises portfolio management by handling complex hierarchies and market data.

7. Vendor selection and market dynamics

The 9th IDT summit concluded the discussions on vendor selection and the crowded data management market, particularly in Australia. Firms are advised to exercise caution when selecting vendors, ensuring they prioritise those that understand the specific needs of the Australian and New Zealand markets.

As a trusted partner to leading fund managers in both countries, AlphaCert brings its deep understanding of regional requirements, expertly delivering investment management solutions that drive efficiency, reduce risk, and fuel growth.

Conclusion

As technological advancements continue to impact the industry, the ability to innovate, pivot, and adopt new systems swiftly will be a differentiating factor for success. IDT 2024 highlighted key trends within investment management, such as simplifying operations, AI integration, and improved data governance. These trends emphasise the need for efficiency, scalability, and data-driven decisions.

AlphaCert addresses these challenges by:

1. Boosting operational efficiency
2. Seamlessly integrating diverse data sources
3. Strengthening data governance
4. Providing scalable, secure SaaS solutions
5. Driving innovation in investment management technology

As firms adapt to new demands, AlphaCert's solutions are crucial for success in this evolving landscape.