How asset managers can leverage data to drive growth

In today’s complex investment landscape, asset managers are under constant pressure to deliver more value, greater transparency, and improved performance. Data is now at the heart of meeting these expectations. At Grant Thornton, we help our clients to take full advantage of data and respond more effectively to investor needs, allowing them to differentiate themselves in a competitive market and modernise their operations through digital transformation.

As we discussed in our article on AI-optimised fund administration, having a clearly defined data strategy is a core enabler to enhance the ability to adopt Gen AI solutions. The integration of advanced analytics and technology is no longer optional but essential for success in today's market.

Reason No. 1: Meet investor needs through personalisation and transparency

Investors now expect more than just financial returns - they seek transparency, personalised solutions, and timely insights into their portfolios. To meet these expectations, asset managers are increasingly leveraging data analytics and advanced technologies.

According to research from BNY, 67% of asset managers are already using AI and ML to drive changes in their business models, enhancing client engagement and service delivery. These tools enable firms to analyse vast amounts of data, uncover patterns, and provide personalised investment strategies that align with individual investor goals.

Integrating diverse data sources and achieving end-to-end transparency have also become top priorities. By consolidating data across various platforms and ensuring seamless information flow, asset managers can offer clients a comprehensive view of their investments. We find that this approach not only improves decision-making but also builds trust by providing clients with clear and accessible information.

Reason No. 2: Outperform competitors through advanced analytics

In a competitive landscape, the ability to process and analyse vast amounts of data swiftly is a key differentiator. Asset managers are increasingly leveraging advanced analytics to identify investment opportunities, manage risks, and optimise portfolio performance. AI is revolutionising asset management by enhancing decision-making processes, streamlining operations, and delivering personalised investment solutions.

A survey conducted by Mercer reveals that 91% of managers are either currently using (54%) or planning to use (37%) AI within their investment strategies or asset class research. By integrating AI and ML into their operations, asset managers can uncover patterns and insights that were previously inaccessible, enabling more informed decision-making and a proactive approach to market changes. As mentioned in our article on digital transformation, the first step toward the AI future is a well-planned digital transformation - one that recognises the power of data.

Leveraging alternative data is essential for transforming traditional investment. However, there are significant challenges:

The alternative data dilemma

While alternative datasets such as credit card transactions or satellite imagery provide valuable insights, they come with high acquisition costs, implementation complexity, limited geographic or sectoral coverage, and timing constraints.

Often, by the time the data's signal is cleansed, modelled, and interpreted, its potential information edge may be short-lived. Increasingly, computational power and advanced modelling capabilities distinguish organisations, as these tools enable the extraction of actionable signals from both traditional and alternative data at scale.

Predicting demand, reducing risk

Leading firms demonstrate that integrating historical flow data with client segmentation enhances their ability to predict market demand and tailor products to changing investor preferences.

By leveraging historical economic conditions and known client segment behaviours to inform product innovation, time-to-market is expedited and the risk of launching outdated or outmoded products is significantly reduced.  

Turning insights into impact

The integration of comprehensive client-flow insights with predictive analytics has aided competitors in refining their go-to-market strategies. This allows for more accurate identification of client opportunities, ensuring that sales efforts focus on products that meet genuine market demand, thereby improving conversion rates and reducing product underperformance.

Therefore, while alternative data remains a valuable resource, evidence suggests that focusing on developing computational and analytic capabilities could deliver a more enduring competitive advantage than merely collecting extensive, high-cost datasets.

At Grant Thornton, we believe this dual approach of targeted alternative data use combined with thorough process modelling is central to maintaining a competitive edge.

Reason No. 3: Facilitate scalable operations utilising cloud-native technologies

Once asset managers have reliable and well-organised data, cloud-native technologies provide the flexibility and speed needed to grow efficiently. These systems are built specifically to take full advantage of the cloud, and can be scaled up or down as needed, depending on how much computing power or storage is required at any given time.

This makes scalability a foundational part of the fabric. Cloud-native platforms are made up of smaller services, called microservices, which can be scaled independently. This allows firms to increase capacity only where it’s needed, like risk analytics or portfolio reporting, without changing the whole system.

Another benefit is agility. With cloud-native technologies, updates and new features can be rolled out faster using automated deployment methods. This helps asset managers keep up with market changes, regulatory requirements, or new client demands more quickly than with older, on-premises systems.

According to LSEG, cloud-native market data solutions can cut total costs by up to 80% while offering easier access to high-quality, scalable data services. Similarly, Forbes notes that cloud computing has become a critical part of long-term strategy in financial services, allowing firms to modernise their infrastructure and build more adaptive business models.

Cloud-native architecture enables scalable growth without the burden of legacy complexity. It supports flexible, responsive operations and allows firms to grow without being held back by legacy systems.

Reason No. 4: Strengthening resilience and meeting regulatory demands

Beyond performance and client engagement, data-led transformation plays a critical role in enhancing operational resilience and responding to evolving regulatory requirements. Asset managers must manage increasing volumes of granular reporting obligations, from ESG disclosures to liquidity stress testing, and cloud-native, data-driven architectures are better suited to automate and scale these processes.

Furthermore, firms that invest early in building analytic and operational capabilities not only improve compliance readiness but also position themselves to move faster than competitors when market conditions shift. Through our experience helping our clients along this journey, we know that aligning data strategies with regulatory expectations is no longer an optional back-office concern; it is an intelligent front-line enabler of agility, trust, and long-term success.

Conclusion

Embracing advanced analytics and cloud-native technologies is essential for asset managers looking to drive investor trust, competitive insight, and scalable operations. These innovations enable firms to leverage data more effectively, scale operations with agility, and provide transparent, comprehensive investment insights. As the asset management industry transforms, firms must continuously adapt to new technologies and methodologies to meet evolving market demands and regulatory requirements.

Asset managers that act now will be best placed to lead the next wave of industry transformation. At Grant Thornton, our teams are primely placed to support you and your team through this transformation journey.

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