A Refinitiv report shows the growing need for investment data and analytics tools worldwide. That’s a massive opportunity for businesses in Liechtenstein and Switzerland sitting right at the heart of Europe’s wealth management industries.
Data is the prime commodity of the 21st century. A new report by Refinitiv titled “The Gold Standard: Redefining Investor Data Needs” surveyed 1,030 investors located in nine global financial centers: Switzerland, United Kingdom, Australia, Canada, China, Hong Kong, Japan, Singapore, and the U.S. The survey found that 39 percent of investors do not feel adequately equipped with the data and content they need to make optimal investment decisions.
A growing need for data
The study shows how the COVID-19 pandemic created unprecedented levels of uncertainty, heightened volatility levels, and changing investor expectations. The result: Investors have a growing appetite for advice, data, and analytics to maximize opportunities and mitigate risks.
Investment behavior is changing as well. When asked to what extent their investment activities had changed in 2020, 38 percent of all respondents categorized as people with a “trading mindset” said their trading frequency had increased. For millennial investors, this figure rose to 44 percent. Long-term investor behavior is also changing; 23 percent of respondents said they had traded more frequently last year.
All of that again underscores the need for more data, not only standard pricing data but also alternative sources of data that provide a fully rounded context. Also an exciting finding: There is a clear growth in demand for ESG indicators, news, and social media analytics: 34 percent of respondents are more interested in ESG investing now than they were six to twelve months ago. 61 percent of millennials investors are more willing to invest in ESG now.
Analytics tools make sense of data
Raw data alone is not enough: 54 percent of respondents say analytics would be useful when making portfolio management decisions. Analytics tools help investors to make sense of the data and fuel it into a decision-making process. Refinitiv’s report highlights the importance of news analytics, product reviews, website activity, internet forums, and real-time ESG signals.
Investors are also looking for a multi-channel digital experience that helps them understand and manage data. That includes access to a range of multimedia content, such as webinars, videos, and podcasts. Wealth managers will in the future need to integrate high-quality data into multimedia content to keep their clients informed and engaged.
Opportunity window for Liechtenstein
All of the above creates opportunities for startups and also established businesses in Liechtenstein. As Liechtenstein is home to both a vibrant technology and finance scene, it could capitalize on these data and analytics trends.
It’s not only the individual investor who will in the future have much more sophisticated data needs; it’s also wealth managers and advisors who will see increasing data demand from their clients. Wealth management platforms and analytics providers are already starting to serve this market, but the opportunity for newcomers is still there in this nascent yet fast-growing market for data. Liechtenstein-based businesses might use the advantages of their location to use this opportunity window.