The Role of Financial Data Analytcis in Driving Strategic Decision in Asset Management Firms

James Midgley ()
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James Midgley: Durham University

A chapter in Proceedings of the 2026 11th International Conference on Financial Innovation and Economic Development (ICFIED 2026), 2026, pp 914-920 from Springer

Abstract: Abstract This essay examines how financial data analytics shapes strategic decision-making in asset management firms, with a focus on risk management and governance. It reviews how integrated analytics platforms and machine-learning tools support portfolio construction, real-time exposure monitoring, scenario analysis, and faster decision cycles, improving visibility over market, liquidity, and factor risks. At the same time, it highlights the limitations that can reduce strategic effectiveness, including data quality issues, model risk and overfitting during regime shifts, and the interpretability challenges of “black-box” models. The essay argues that analytics delivers sustainable strategic value only when embedded within robust governance frameworks that ensure transparency, accountability, and disciplined human oversight - particularly as ESG metrics and alternative data become more central to investment processes.

Keywords: Asset management; financial data analytics; risk management; machine learning; model risk; governance; ESG (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6239-642-5_95

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DOI: 10.2991/978-94-6239-642-5_95

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