August 23, 2022
Data Democratization Driving Efficiency in Financial Services
Watch this video online:
https://youtu.be/qKYtfaSDsxE?si=cv1qeAaS7MJwun5A
Transcript
We hear a lot about democratization—the action of making something accessible to everyone—in public policy. But democratization also applies to data, and we believe advancements in technology will drive change within the financial services industry.
More Data
There’s so much more data today than there was in the past. It’s partly due to the COVID-19 pandemic. As more people worked and learned from home, demand increased. That’s where the idea of data democratization comes in.
The Potential Benefits of Democratizing Data
Data democratization has a number of benefits.
First, shifting time we spend aggregating data to analyzing data has the potential to improve workflows and enhance decision-making.
Second, incorporating new and different datasets to existing processes including investment research can help us produce better outcomes for clients.
Third, more fluid access to data gives us the ability to understand client interests and needs better so we can provide more personalized solutions.
Increasing Challenges
That said, with all this additional data comes challenges, which we in the industry are working to solve.
One challenge is that data can come from multiple sources, which requires users to go to many different places to find what they need. Sometimes a manual effort is required to access and retrieve this data.
We’re addressing this challenge with cloud-based technologies, which allow for flexibility and connectivity of various services.
For instance, all services become an abstraction, meaning they are self-contained and can be flexibly integrated where the modification of one component will not affect the entire system Importantly, each component can be customizable or plug and play.
You also have the flexibility to choose technologies versus their open-source alternatives, such as Spark.
Another challenge is that sometimes the data hasn’t been around for long, and it doesn’t have a consistent format. Today, there are new technologies that can read these formats natively, and the financial services industry is increasingly adopting them to address these challenges.
Also, there are many cloud-based solutions that make data easily accessible by combining data in various formats from different sources.
Switching Focus
Data underpins every decision we make at William Blair Investment Management. The advancement of technology solutions is making it easier to shift the time spent on accessing data to analyzing data. And our efforts to democratize data can benefit our colleagues and ultimately our clients in many ways.
Filmed August 2022
The views and opinions expressed herein are those of the speaker(s) as of the date of publication, are subject to change without notice as economic and market conditions dictate and may not reflect the views and opinions of other investment teams within William Blair. Factual information has been obtained from sources we believe to be reliable, but its accuracy, completeness, or interpretation cannot be guaranteed. This material may include estimates, outlooks, projections, and other forward-looking statements. Due to a variety of factors, actual events may differ significantly from those presented. This video has been provided for informational purposes only and should not be considered as investment advice or a recommendation of any particular strategy or investment product, or as an offer to buy or sell any securities or related financial instruments in any jurisdiction. Investment advice and recommendations can be provided only after careful consideration of an investor’s objectives, guidelines, and restrictions. Investing involves risks, including the possible loss of principal. Past performance is not indicative of future results.
Copyright © 2022 William Blair. “William Blair” refers to William Blair Investment Management, LLC. William Blair is a registered trademark of William Blair & Company, L.L.C.
