Northern Trust Survey Shows Buy-Side Plans for Strong Use of Data Science

A Northern Trust survey found that 98% of buy-side firms are using data science or planning to pursue it to optimize performance in the next two years according to a story in The TRADE news. Of the 300 global asset management firms across North America, Asia Pacific and Europe, the Middle East and Africa surveyed, 98% of them were already using or planning on using data science and decision support tools to optimize their performance. The survey also found that while almost half of the respondents said they had a system to measure decision-making and data inputs, just 12% said they used a research management platform that was not spreadsheet-based. Several major participants have launched data science-focused initiatives in the last year, as ongoing industry themes such as environmental social and corporate governance (ESG) that require the analysis of extensive data sets continue to concrete themselves in the market. Earlier this year, Northern Trust made an investment into cloud-based analytics platform Equity Data Science (EDS), as it looks to extend its Whole Office strategy. The deal will see the bank integrate EDS decision support tools with its core technology platform, providing the Chicago-headquartered custodian with new data science capabilities for institutional investors and asset managers.