The Belgian funds market uncovers its concerns and opportunities in our B2B research. How do funds experts look at new technologies? 70% of the respondents is planning investments in new technologies in the next two years. 83% of them is planning to do so related to Data and Analytics.
Many asset management companies are trying to capitalise on the power of big data by using analysis technology, such as natural language processing, image recognition and machine learning. Still, the integration is going slower than in other industries, says Mason Woodworth, Managing Director at BlackRock. ‘In the Systematic Active Equity team of BlackRock, we have been using this technology already for over 10 years, for the analysis of traditional and alternative datasets. The costs related to these are an important factor to take into account. They could be the reason why the integration in our industry is happening slower.’
Although the power of machine-learning algorithms is greater than human power, the success still depends on human refinement.MASON WOODWORTH
Human aspect remains crucial
But also the large volume, the other structure and the type of data that is generated can be an obstacle. For the analysis of alternative or big data, new tools are required, as well as a new balance between computers and human interpretation. Mason Woodworth: ‘Although the calculation and adaptation power of machine-learning algorithms is greater than human power, the ultimate success still depends on human refinement. That’s why, as with any technology, it is important to continue to look and develop new insights, innovations and data sources.’