Nearly two-thirds of financial services firms struggle to store, access and share data, and more than half are considering single data hubs to enhance their ability to make data-driven investment and business decisions, indicates research released today by Waters Technology, the leading financial market technology information provider, and MarkLogic Corporation, the next generation data platform provider for simplifying data integration.
The research, based on a survey of more than 100 firms including investment banks, asset managers and broker-dealers across Europe, North America and APAC, underscores the vast challenges and opportunities for financial services firms to better use data to boost investment returns, improve operational efficiencies and more easily meet regulatory reporting requirements.
To tackle this, 56% of firms are considering a single investment research “hub” to store all research and ancillary information to better make data accessible. Two-thirds of these firms say a single hub will enable them to make better investment decisions, and 59% expect it to enhance the client experience via personalized research, the research indicates.
The research is revealed in a new report, Investment Data Practices Under the Spotlight. Other highlights include:
- 64% of respondents, on aggregate, believe their organization’s research data is stored in too many disparate systems or locations across the enterprise.
- 66% of firms, on aggregate, are not able to access all their core investment data in one place.
- 72% of respondents, on aggregate, have no tools or insufficient tools to create personalized, authoritative research for clients in a timely manner, which hinders the client experience.
- Half of the firms considering a single data hub say it will help them streamline processes around storing and curating investment research.
“For any buy-side firm that wants to make the best possible investment decisions, having data at their fingertips is critical,” says Giles Nelson, Chief Technology Officer, Financial Services at MarkLogic. “It’s also important to regulators that firms understand how a conclusion was derived, which means they’re able to track data lineage to justify decisions— not only to regulators but to investors or other key stakeholders. This is not about getting every decision right and proving your case, it’s about showing there’s a process, and you have data to support decisions.”
The biggest challenge to achieving approval for investment in new technologies is the business case. However, 69% of firms believe building the case for investment in a data hub around improved operational efficiencies will help them secure the funds. Meanwhile, 49% believe the business case for an improvement in investment decisions that enable them to achieve alpha is also key.
IS PRIVATE PLACEMENT LIFE INSURANCE THE PERFECT PRODUCT FOR GLOBAL HNW FAMILIES
By Louis Zuckerbraun, Managing Director, GMG Insurance
Everyone wants to know that their family will be okay after they die and will do whatever they can to ensure that. That’s as true for high net-worth individuals (HNWIs) as it is for anyone else. But in an age where families are spread across the globe, leaving the kind of legacy you want can be incredibly complicated.
One product that could make things a great deal more simple is Private Placement Life Insurance (PPLI).
Originally conceived in the US, PPLI is rapidly gaining traction across Europe. Not only is it more efficient than traditional forms of life insurance, allowing the investments within the policy to hold many more types of assets and asset classes, it can also be a useful way to overcome specific issues such as management and control, beneficial ownership and substance.
While PPLI is gaining popularity across the globe, it’s still a relatively unknown product set, even among the HNWIs it would most benefit. It’s therefore worth looking at exactly what PPLI is.
Effectively an investment wrapped inside an insurance policy, a PPLI policy’s cash value depends on the performance of the investments within it. These investments can include hedge funds, mutual funds, and other potentially lucrative assets. Ultimately, it’s down to the policyholder to choose what kinds of investment they’d most like to have, meaning that they have a lot more freedom than they would with an ordinary life insurance policy.
Depending on the jurisdiction, a PPLI policy can also provide significant tax savings. In the US, for instance, the Internal Revenue Code treats insurance differently than it does investments. So, by packing an otherwise taxable investment in a tax- free policy, investors can reap big rewards on the investment, as well as the death benefit, tax-free.
But PPLI policies aren’t just beneficial from a tax perspective, they’re also useful for anyone with a global family.
A PPLI policy is generally by nature a globally focused vehicle. So, for instance, approved banking partners and advisors in Switzerland can work with US persons, to provide an investment vehicle that has a global focus.
The policy would purchase global funds and be managed by a global advisor who is outside the US but understands the US market. This makes it perfect for anyone who wants to diversify from traditional United States Dollar denominated investments but wants to maintain tax compliance and work with international advisors.
This solution works very well with a global family who may have, as an example, a child studying in London, or with international businesses, and who wish to build exposure globally in a tax efficient and US compliant manner. An international PPLI policy would be very beneficial to the family.
Further, the policy can be denominated in Swiss Francs, US Dollars or Euros depending on the needs and strategies of the policy owners or beneficiaries and still pay tax efficiently to the US persons.
These features also mean that a PPLI policy can be a useful replacement for, or supplement to, a family trust, especially if a tax authority is unlikely to accept the trustees as the legal owner of the assets held in the trust.
A clear choice
With more and more families living in different geographies, a PPLI policy is therefore an option that should be playing a much bigger role in the mainstream. It provides an accepted and compliant solution to the planning challenges faced by ultra-high net worth and high net worth families.
While life insurance, in general, provides a mechanism for estate tax planning, asset protection and investment flexibility that cannot be beaten by any other compliant tool, PPLI provides the flexibility and protection that informed high net worth families increasingly require.
If you’re looking a purchasing a PPLI policy, however, it must be managed by professional insurance and legal advisors who understand the product.
FIVE THINGS YOU’RE DOING THAT ARE INVALIDATING YOUR CAR INSURANCE
Car insurance is a legal requirement for motorists, but many drivers may be unknowingly voiding their policy.
Failing to update your circumstances or providing false information, whether intentionally or not, could lead to your insurer refusing to pay out or cancelling your policy. In the worst-case scenario, you may be liable to be prosecuted for fraud.
To help motorists avoid any issues with insurance, experts at online car parts provider CarParts4Less have outlined five common mistakes that can invalidate your policy.
- Car modifications
Nearly half (47%) of Brits have modified their car in some way, with over a third (37%) spending £500 or more souping up their motors*, but failing to notify your insurer about any changes to your vehicle could void your policy.
There are two ways that car modifications can affect your insurance premium: if they increase the likelihood of an accident (performance upgrades), or if they increase the likelihood of theft (cosmetic upgrades or tech add-ons, such as a soundsystem).
Always ensure that you inform your provider about any changes to the vehicle, as this will allow your insurer to assess the validity of your policy.
Insurance for young drivers often costs more than groups deemed less of a risk. One way some motorists try and get around the higher premiums is by having a low-risk driver, such as a parent or partner, named as the main policyholder and adding the real motorist as a named driver.
However, if you get caught ‘fronting’, as this tactic is known, your policy will immediately be cancelled, and any claims denied. These cases are often taken to court and are classed as insurance fraud, with outcomes including fines of up to £5,000 and six points on your license.
- Not updating your address
Car insurance premiums can vary depending on the postcode, as some areas have higher rates of thefts and break-ins. It can be tempting to put down your home address as somewhere different to where your car stays every night; for example, your parents’ house while you are at university. However, if you do so, your insurer can refuse to pay out for any claims made at your actual main living location.
Many companies have investigative departments (called a special investigations unit, or SUI) dedicated to making sure information on your insurance and claims is correct, so while you may think you can get away with not updating your address, you’ll likely be caught when you make a claim.
- Not reporting accidents
Many motorists don’t see the point of notifying their insurers about small bumps and scrapes. However, even if you don’t intend to claim, it is important to inform your insurance provider about any damage, as not doing so is a breach of your policy.
This protects you in the event that the other driver changes their mind and decides to claim. It also ensures damage is accounted for if you do need to claim for future incidents, as damage which is inconsistent with a claim may mean that you are denied.
There are three types of car usage that insurance covers: social only, social and commuting, and business
These different policies provide different extents of coverage, and using your car outside of this usage will mean that you’re unable to claim. For example, social usage does not cover your car when commuting, so you will be unable to claim for any incidents while travelling to or from work.
A CarParts4Less spokesperson said: “While it may be tempting to bend the rules to pay for a cheaper policy, it’s never worth it, and will often lead to you paying substantially more in the long run.
“It’s important to always read the terms and conditions of your car insurance policy, to ensure that you have not accidentally invalidated the policy. Keep your insurance provider up to date with any change of circumstances, regardless of whether or not you think it’s relevant. It’s better to be safe than sorry.”
To find out how to legally reduce your car insurance costs, visit https://www.carparts4less.co.uk/blog/10-tips-to-reduce-your-car-insurance-premium
MAKING THE (ENTERPRISE) GRADE IN LOW-CODE SOFTWARE
By Willem van Enter, Vice President EMEA, OutSystems We all use software applications every day, all the time. That...
IS PRIVATE PLACEMENT LIFE INSURANCE THE PERFECT PRODUCT FOR GLOBAL HNW FAMILIES
By Louis Zuckerbraun, Managing Director, GMG Insurance Everyone wants to know that their family will be okay after they...
FINTECH IN AFRICA: WHY THIS MUSTN’T BE A DECADE OF WASTED POTENTIAL
Albert Maasland, Chief Executive Officer at Crown Agents Bank The current COVID-19 pandemic is an unprecedented crisis of our times....
NEW TECHNOLOGY PLATFORM REDUCES CLAIMS PROCESS FROM WEEKS TO MINUTES
New platform has potential to cut fraudulent claims by almost half Decrease claims costs by as much as two thirds...
CORONAVIRUS: FURLOUGHED WORKERS AND WHAT IT MEANS FOR BUSINESS
by Tina Chander, Wright Hassall c All businesses with a PAYE scheme in place on 28 February 2020, regardless of size...
FIVE THINGS YOU’RE DOING THAT ARE INVALIDATING YOUR CAR INSURANCE
Car insurance is a legal requirement for motorists, but many drivers may be unknowingly voiding their policy. Failing to update...
CORONAVIRUS PANDEMIC, STORE CLOSURES, SHIFT CONSUMER BUYING BEHAVIOUR LEADING TO ACCELERATED DIGITAL TRANSFORMATION FOR MERCHANTS
Forter Issues First In A Monthly Series of Coronavirus Special Reports Forter, the leader in e-commerce fraud prevention, today announced...
BTON FINANCIAL PARTNERS WITH GENESIS TO AUTOMATE TRADING FOR ASSET MANAGERS
BTON Financial, the independent outsourced dealing desk for asset managers and genesis, the Low Code Application Platform for Capital Markets,...
HOW TO KEEP DIGITAL TRANSFORMATION ON TRACK AFTER THE PANDEMIC
Ashley Coker, CEO and founder, Slate Introduction The global coronavirus health emergency has made it abundantly clear how dependent...
THE FUTURE OF CUSTOMER EXPERIENCE IN DIGITAL BANKING
By Richard Billington, Chief Technology Officer, Netcall Over the past five years, the digital banking revolution has had a seismic...
TRANSFORMING BANKING: WHY COVID-19 IS UNFREEZING CONSUMER HABITS
Raj Chakraborty, Senior Managing Director, Publicis Sapient There is much debate about the impact of COVID-19 on the economy....
IS YOUR OFFICE LEASE CRUSHING YOUR BOTTOM LINE? YOU HAVE OPTIONS
By Jonathan Wasserstrum, Founder / CEO, SquareFoot These are unprecedented times for us all. Nobody has a playbook to get...
THE TRIALS AND TRIBULATIONS OF TRADERS TRADING FROM HOME
Steve Haworth, CEO of TeleWare Group Banks had hoped to keep their London trading floors open amid the worsening coronavirus...
HOW WILL REVOLUT’S MOVE INTO OPEN BANKING AFFECT US?
By Richard Mathias, Senior Technology Architect at LiveArea Despite current uncertainty, the financial services sector is experiencing transformative change year...
IN CONSUMER BIOMETRICS WE TRUST: AUTHENTICATION FOR THE DATA PRIVACY AGE
Jonas Andersson, Head of Standardization at Fingerprints Data privacy is high on the global agenda. In the wake of data...
CAPITAL MARKETS – LIQUIDITY MANAGEMENT DURING COVID-19
Tony Farnfield, Partner at management and technology consultancy, BearingPoint When “Dr. Doom” predicted the 2008 financial crisis back in...
SONY BANK SECURES AND ENHANCES MOBILE BANKING WITH ONESPAN’S MOBILE SECURITY SUITE
App shielding, biometric authentication and additional technologies secure and improve the customer experience for Sony Bank’s mobile banking app ...
KOREA’S KB BANK USES TRUSTONIC IN-APP PROTECTION TO ENHANCE MOBILE BANKING EXPERIENCE
Using Trustonic Application Protection enables KB Bank to dramatically improve the authentication experience for users of its mobile banking app...
CUSTOMER CARE TODAY WILL BUILD RESILIENCE FOR FUTURE CRISES
Cathal McGloin, CEO of ServisBOT writes, “The COVID-19 pandemic has created major spikes in calls to financial sector helplines dealing with customers...
THE CO-BRAND CREDIT CARD MARKET – SINK OR SWIM
By Chris Vinnicombe, VP Financial Services at Acxiom The co-brand credit card market is the result of the partnerships between...