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Adopting the Managed Services Approach

Martijn Groot

Why Financial Services firms are focusing on Managed Services for Financial Data Management

by Martijn Groot, VP Marketing and Strategy, Alveo


Across the financial services sector, change is a given and data management requirements a moving target. The latter needs are driven by regulatory demands for more granular reporting, by an increased focus on solid information management processes, business requirements for faster access to more data to improve decision making, management needs for relevant KPIs and simply ever-growing volumes and diversity of data sources.

Taken together, these pressures are driving firms to look for more efficient ways of managing their data that lower the cost of change, of scaling up to handle larger volumes and quickly evaluate or onboard new data sources, drive operational efficiencies and tap into specialist skillsets. That in turn is leading more and more firms to look outside the organisation for the help they need.

In a recent research study commissioned by Alveo, over half of asset managers (58%) said that recent industry regulations had resulted in their organization either investing in new technology or bringing in a third party to help meet new data management requirements.

Moreover, 33% of the overall group said that reducing the cost of change is one of the main benefits of outsourcing data management for the buy side. The ongoing internal effort required to keep systems up to date in light of new business and regulatory requirements quickly mounts up and costs can both be unpredictable and rapidly escalate out of control.

These are trends that impact both hedge fund and asset management firms but also retail, commercial and investment banks. We see a growing number of financial institutions deciding to make the move to a managed services model in order to help keep control of their data, meet regulatory requirements and achieve a reduced and more predictable cost of change. At Alveo, we have two managed services solutions that firms can choose from to help them achieve these goals: Alveo Platform as a Scalable Service (PaSS) and PaSSPort.

PaSS allows financial institution customers to wrap Alveo data management technology with delivery, global operations, continuous change controls, and singular expertise. PaSS is a comprehensive enterprise level solution that can be used to flexibly source data management operations, from a use-case level to enterprise scale. PaSS materially lowers the cost of ownership by supplying data management capability to a financial services organisation while allowing it to reap the benefits of a platform that incorporates best practices across a large and growing client base.

PaSSPort is based on PaSS but targeted at businesses that are looking for a simpler, lower-cost approach, based on specific use cases. It is also typically used for infrastructure augmentation rather than replacement. PaSSPort also includes a REST API and web interface for browsing and self-service data discovery and optimizing data sourcing, as well as a dashboard on the data sourcing and supply process, so users can always answer the ‘where is my data’ question.

The key is agility. PaSSPort can be onboarded quickly by clients. It optimises data sourcing, transparently shows the status of data preparation and integrates with business workflows. PaSSPort is available direct via Alveo and will also be available through the marketplaces of the main cloud providers. Clients pay on a monthly or annual basis with a 3-month minimal commitment.

Managed Services Coming to the Fore

The success of these services stems from a growing drive from firms to outsource more of their financial data management. which allows them to tap into the skills and expertise of a specialist provider that has captured common industry requirements. Firms today also increasingly want to tap into the benefits of a full services model. They are looking for services that bundle hosting, application management, integration and testing, often in a bid to achieve faster cycle time and ROI. On the data management side, there is also a growing emphasis on rigorous processes with clear data lineage, data quality assurance and governance, both for regulatory compliance and to drive operational efficiency. We are seeing a growing number of financial services businesses today looking to incorporate a managed services approach into their financial data management process and Alveo with its Pass and PaSSPort is playing a major role in making this happen.