Data Custodians Elevate Demands for Extensive Data Platforms
In the dynamic world of asset management, the importance of managing vast datasets efficiently and cost-effectively has never been more crucial, according to Elaine Tan, Head of Asset Owners & Asset Managers Client Lines for Asia Pacific at BNP Paribas. This assertion comes as institutional investors in the APAC region increasingly integrate Environmental, Social, and Governance (ESG) criteria into their investment decision-making, with 79 percent doing so, as per BNP Paribas' 2025 Survey.
The challenges pertinent to ESG data are numerous. There is a lack of standardisation in performance and reporting metrics, coupled with uneven consistency and reliability in the data. To address these issues, specialised service providers are stepping in, offering AI-driven sustainability data platforms like Emidat, which automates environmental product declarations and enhances transparency in environmental impact data.
As institutions evolve their data strategies, they are investing in modernising and future-proofing their IT foundation, upgrading core investment platforms, and deploying AI tools to improve data processes. One such example is BNP Paribas' Securities Services business, which has partnered with UniSuper, one of Australia's largest superannuation funds, to implement the Data PRISM360 solution, powered by NeoXam technology.
Data PRISM360 is a centralised platform designed to help asset owners like UniSuper tackle key investment data challenges, streamlining data management processes and providing a unified view across multiple assets. The platform enhances reporting capabilities and offers advanced analytics, including financial metrics and ESG factors.
The survey numbers highlight the critical need for improvement in ESG data collection, standardisation, and harmonisation. Asset owners are managing a variety of datasets, including data from less liquid and transparent markets such as private assets. Inaccurate or incomplete data can limit asset owners' ability to manage various risks, such as climate-related risk, cybersecurity risk, market volatility, and more.
By leveraging advanced technologies, standardising data practices, and partnering with specialised service providers, asset owners can unlock new levels of efficiency, risk management, and investment performance. The McKinsey report suggests that institutional investors' effective deployment of technology and AI could generate a return on investment (ROI) of more than tenfold across three domains: investment returns, operational efficiency, and risk management.
As asset owners continue to evolve their data strategies, the role of technology and service providers will become increasingly crucial in navigating the complexities of modern investment landscapes. Institutions are no longer just focusing on meeting reporting requirements; they are increasingly focusing on leveraging technology to improve overall operations and data quality.
In conclusion, the integration of advanced data management solutions like Data PRISM360 will play a pivotal role in helping asset owners master the monitoring and adjustment of their strategic asset allocation, particularly in the context of ESG investments. The future of asset management lies in harnessing the power of technology to make better, more informed decisions, and BNP Paribas is at the forefront of this transformation.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Stopping Osteoporosis Treatment: Timeline Considerations
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
