There is a saying that information is power, which is why big data has become such an important part of the financial world. That includes the mutual fund industry, where having access to real-time investment data can provide distributors with a major competitive advantage

While having access to a tremendous amount of data is great for distributors, there can sometimes be too much data to analyze quickly. A large data source is only helpful if it’s relevant to your investment universe of interest. That is where investment data management solutions can be helpful for intermediaries.

Data management solutions aim to streamline communications and analytics capabilities using machine learning. With access to data management for financial services, analysis capabilities will allow distributors to receive real-time notifications with access to all the information they need. 

The Biggest Advantages of Investment Data Management Solutions

The right solutions can completely integrate with all proprietary data, conform to all regulatory needs, and smooth the flow of data to downstream systems, making it easier to act on the information at hand. In essence, this creates a single source of truth, placing important data for investment management right in the palm of their hands.

1. Reduced Risk

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One of the first benefits of investment data management solutions is that it is possible to reduce risk significantly. There are a few ways this can happen. They include:

  • Regulatory Risk: Companies can reduce their regulatory risk with a comprehensive data management solution. Adhering to strict data privacy laws when you collect user data, and reporting accurate information to the relevant authorities, is critical.
  • Cyber Risk: Speaking of risk, a strong data management solution can also reduce your risk of being hacked. Cybercriminals are always looking for sensitive data, and a strong data management solution can reduce your cybersecurity exposure.
  • Greater Transparency: A strong data management solution will help you increase your transparency regarding your own data. That way, you can make decisions that can drive returns while also reducing volatility.

Use a strong data management solution to help you reduce the risk you take on.

2. Increased Accuracy

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Even if you are collecting a lot of data, it is not actionable if it is not accurate. If your data is inaccurate, you cannot use it to make meaningful reports. 

With access to a data management solution, you can ensure your information is accurate. You can automate data quality protocols, track your data as it moves from place to place, and introduce procedures to ensure your data is properly cared for, regardless of where it is located. You can eliminate redundant steps, clearly specify people’s job scopes, and reduce the amount of data lost in translation.

Some of the ways a comprehensive investment data management solution can increase accuracy include:

  • You can standardize the data entry process, reducing people’s mistakes.
  • You can automate certain forms of data management, reducing the chances of human error.
  • By centralizing your data in one place, everyone will know the most recent data set, reducing the chances of someone using the wrong set.
  • You can simplify the data entry process, reducing the chances of mistakes. The fewer keystrokes you have to make, the lower the chances of making an error.

For all of these reasons, use a data management solution to improve data accuracy.

3. Real-Time Updates

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The financial markets are more competitive today than they have ever been in the past. If you can act on changes in the financial markets faster than your competitors, you can stay one step ahead of them. With a data management solution, you can get real-time updates about changes in the market and insights regarding your data. Then, you can complete a cross-company analysis more quickly, giving distributors the tools they need to make decisions. 

Timely and accurate NAVs and Daily Accrual Factors are critical, and data management solutions reduce the risk of missing critical updates.

4. Cost Savings

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You can also use a data management solution to reduce your overhead expenses. You will not need as much manpower behind your software with access to a comprehensive solution. You can free up your employees to focus on other areas, helping you cut your overhead expenses. You may not need to rely on multiple third parties any more, further helping you save money. 

Finally, a comprehensive data management solution should also help you reduce your regulatory exposure, helping you save money on potential fines and sanctions. You can free up valuable capital that you can spend elsewhere.

5. Easy Integration

financial data integration concept

Time is money, and you do not want to spend time entering the same data set twice. That is why you must find a data management solution that can easily integrate with your other software programs.

With a comprehensive data management solution, you can make it possible for your programs to talk to one another. Instead of having to manually move data from one program to another, you can automate the process with the right program. That way, you ensure the accuracy of your data across all programs, making it easier for your leadership team to make decisions.

Top Investment Data Management Solutions From Delta Data

Financial companies face changing regulatory regulations, technological tools, finance industry best practices, and even internal changes. The faster you can identify those changes, the easier it will be for you to get ahead of them. That is exactly where SaaS solutions from Delta Data can be helpful. 

With Delta Data, you can ensure that your team is the first to respond to major changes in the industry. Our programs can help you stay ahead of your competitors without introducing new risks into your system. If you would like to learn more about how we can help you improve your data management, contact us today to speak to a member of our team.