Peter Finnerty: Hello and welcome to our Mutual Fund Digital Solution Series. This is Peter Finnerty, PwC's Mutual Fund leader. In this series we are exploring how the mutual fund industry and we, at PwC, are leveraging digital solutions to transform both our businesses.
Today we want to spend just a couple of minutes to touch on data and data management for the industry and for us, at PwC - current state and where folks are heading given the importance of data management to any digital strategy.
Current State: Currently as folks understand, it is not uncommon in the industry to have multiple, decentralized data management systems that support specific tasks or reporting requirements. With respect to fund reporting and tax, in particular, while it is very common to rely on the same information, again it is not uncommon for the data to be derived or housed at times from various sources.
That said, many industry participants have or are working on a data strategy which includes a bunch of elements but often times the creation of a central depository of data - sometimes referred to as data lakes or data hubs - where data can be centralized and fed to various users of the data - middle office, back office, front office - ensuring that the data is consistent, accurate, and centrally protected available to all users.
Similarly, at PwC, we're spending an incredible amount of time to put data at the center of everything we do for our mutual fund clients. Our data strategy is three simple pillars. Number one, a single automated data extraction process for all of the industry's key administrators will maintain much of the fund level data.
Number two, a process where data is received once, cleansed, enriched, secured, and ultimately staged under a common data model, where all the data from the various administrators are set up under a common taxonomy or data structure.
And number three, the creation of connections or APIs between the data/this common data model, and all relevant PwC Mutual Fund applications, audit tax as well as any value-added applications that could be requested by our clients.
So to repeat, a single extraction process, centralization of the data under a common data model, and all connections for our PwC applications into that Central Depository Data. So, what are the benefits of streamlining the data management process for the industry and PwC? This single data platform concept obviously provides for speed, efficiency, risk mitigation, and consistency for any existing process. It also provides for an easy way for any future applications or digital solutions to easily connect into a data platform that has been properly cleansed, enriched, and protected.
An overused cliché is that data is the new oil for the new digital economy. Data really does power all the engines these days. And like oil, data needs to be properly refined, transported, and stored. Any digital transformation initiative has to put data at the very center as the platform for that strategy. Feel free to continue the conversation with any of your PwC contacts.
Thank you for your time and please keep listening to our podcast series.
Mutual Funds Leader, PwC US
Mutual Fund Tax Technology Leader, PwC US