Investors Transforming Data Strategy: Survey

A new report released by State Street looks at how investors are transforming their data strategies and argues that a holistic data strategy is no longer a differentiator, it is a baseline requirement.

The study, Capturing the Data Opportunity in an Era of Uncertainty, was based upon insights from 920 asset managers owners, wealth managers and insurers globally and finds that holistic data strategies are indeed on the rise, with 26% of C-suite respondents report having one in place. Additionally, the report finds that nearly three-quarters of those without such a strategy expect to implement one within two years.

The bank highlights the urgency of establishing such a strategy. Noting that around 40% of respondents indicated they’re either poor, somewhat poor or somewhat good in their data use, it says, “Without addressing the gap, these organisations risk falling permanently behind their peers.”

Nearly all respondents anticipate improvements in investment returns, revenue growth, and operational efficiency from better data processes. Around 10% expect gains exceeding 50%, while more than half forecast improvements between 10% and 40%.

Inevitably, AI is seen as a major enabler, 61% of respondents see Gen AI delivering the most value in defining investment objectives today. In the next two-to-five years, 47% expect Gen AI to be most impactful in product development and strategy selection.

Many firms (32% of respondents) are also prioritising the use of back-office data to generate competitor intelligence and market insight, and, State Street will be pleased to hear (and report), firms highly satisfied with their custodians are significantly more likely to leverage this data for front office priorities (74% vs. 65%).

“Institutional investors are at a pivotal moment in their data transformation journey,” says Joerg Ambrosius, president of Investment Services for State Street. “What our research confirms is that a holistic data strategy is no longer a competitive advantage – it is becoming a baseline expectation. The firms that are aligning their front, middle, and back-office data capabilities are the ones best positioned to unlock meaningful value from technologies like generative AI.”

Chris Rowland, head of custody, digital and fund services product at State Street, adds, “The role of the custodian is evolving rapidly. As this research shows, clients are increasingly looking to their service providers not just for operational support, but for strategic insight. State Street and others who can harness back-office data to inform front office decisions will be the partners of choice in the next phase of institutional innovation.”