At TSAM London, Lotte Tønsberg from Clearwater Analytics discussed the biggest challenge currently facing buy-side firms which isn’t choosing between best of breed solutions and a full front to back system; it’s defining a robust data strategy. Every firm in the buy-side space is struggling with the same fundamental problem: securing accurate and timely data for the front office to make crucial investment decisions.
The path to solving this challenge and creating a “single source of truth” is establishing one foundational data layer which means partnering with a provider that can help form a front-to-back strategy centered on a single data set, ensuring every stakeholder across the firm is consuming the exact same information.
The modernization of investment operations is, as Clearwater Analytics notes, the “topic of the century” so when it comes to selecting the right technology, the number one priority is verifying if a provider is genuinely a SaaS platform. Many firms say they are, but they’re actually not, which is why Tønsberg suggests a simple litmus test: ask if you have to manage upgrades. If the answer is yes, you should look elsewhere. While selecting a new front-to-back provider can seem intimidating, it doesn’t have to be a major “big bang” overhaul. Firms can phase out the implementation by developing a strategy alongside their chosen provider.
Ultimately, Clearwater Analytics advises against focusing on short-term, tactical fixes and being conscious of your overarching, long-term goals is vital for success. Although creating this strategy may seem daunting now, putting a plan in place and rolling it out in a phased approach is what will truly help a business.
Clearwater Analytics’ key takeaway is simple: don’t wait to move onto a modern SaaS platform as delaying this move will cause firms to fall behind the curve and miss out on essential benefits like efficiency, scalability, and profitability.
