The investment management industry can use their own data to design, manufacture and market solutions more effectively with a view to generating outcomes that are more aligned to investor expectations, according to Daron Pearce, Global Investment Manager Segment Head for Investment Services at BNY Mellon.

BNY Mellon has published a new white paper examining Big Data's credentials and its potential as a transformative tool in the current era of shrinking margins and ever-more sophisticated and powerful analytical tools.

The new paper entitled Big Data and Investment Management highlights how custodians, depository banks and administrators are positioned at the forefront of product development around Big Data solutions that address the complex and commercially critical issues of how to enhance both sales performance and client satisfaction.

Pearce said: "As the lines between the front, middle and back office continue to blur, smarter data management is essential for effective fund management. Big Data facilitates that, but also poses challenges.”

The paper also examines how investment managers can utilize Big Data to bring together separate elements - dark pools of data, predictive analysis, behavioral finance - to allow the investment industry to enhance product design, drive sales and improve investor outcomes.

Mark Gibbons, Chief Information Officer, EMEA at BNY Mellon, said B2C businesses have already embraced Big Data, developing sophisticated, data-driven profiling tools that enable tailored services for different client segments.

“While client, transactional and portfolio data is collected across the investment management industry for historical, regulatory and analytical purposes, most managers are yet to fully leverage these diverse data pools with a view to identifying key correlations and generating fresh insights,” he said.

“That is a particular area of focus for BNY Mellon, as demonstrated by our own Digital Pulse offering which tracks activities, processes and transactions within our company, resulting in predictive analytics that enable businesses to work smarter and drive improvement,” he added.