Empowering Investment Insights
The volume and amount of data that's being consumed by the investment managers that we serve has picked up incredibly over the years. And it's not just volume. It's also the pace in which clients are consuming data. All of this is actually being accelerated by the use of AI in their own processes. AI is very data intensive to provide the support for learning models.
And, we're seeing that being adopted in spades by our clients. This is something that we enable from an Alpha data perspective through our ability to curate data, that's both in back-office context, middle-office context and front-office context and provide that data to our clients in a harmonized view. That allows the clients to really focus on the value creation, and not have to worry about the utility, the accuracy, the timeliness of the data.
All of that data can be presented in context of the business case that the front office teams are trying to execute on, whether that's portfolio management, you know, trading use cases, whether that's post-trade, operational views of data or their end client reporting, and client servicing and distribution requirements.
Unified Flexibility, Open by Design
It's actually an interesting dilemma that our clients are facing. They do want a consolidated experience however they don't want to lose the best of breed components that make their investment process unique. It's a bit of a dichotomy that we have to navigate for our clients. That's why we've committed to an open architecture structure that simplifies the platform and services experience, allowing them to continue to leverage external platforms, third party platforms that provide unique value to the investment process.
Yet taking the complexity of those integrations away. So our open architecture approach is modular and allows for integrations with those third party platforms in an experience that's truly from a platform perspective, brought together as one. An example of that would be our partnership with MSCI, where you can actually access the full capabilities through the platform and through direct connectivity to the capabilities that MSCI offers.
That gives the portfolio managers ultimate flexibility, but also consistency in their experience. This is really differentiating in that everything that we're doing, everything that we're building allows for real flexibility. But yet without the complexity that comes with that. Also, the other thing that we're seeing is the ability for us to keep pace with our clients as they continue to innovate, as they continue to grow globally and want to scale their business.
Our open architecture approach, our modern architecture, our use of cloud, those techniques enable our clients to accelerate, to innovate and allows us to support them in ways that a traditional, monolithic approach to an application environment, point to point integrations simply can't keep up with. We leverage the cloud capabilities, the open architecture and modular approach to provide flexibility to allow us to keep pace with product innovation as clients continue to need to compete with new products, new client segments and new distribution channels. We're there for them through that journey because we're modular, because we're open and we can flex according to their complexity and or growth patterns.
Powering Innovation with a Data Foundation
The Data Foundation also provides the ability for clients to really focus on the investment process, allowing them to innovate and move more quickly while we, at State Street can provide, can curate, and can expose data in context to the portfolio management process. That allows third party data to be aggregated, that allows front to back data to be aggregated, and often is very complimentary to a client's broader data vision.
While State Street provides all of the investment oriented data the front, middle, and back-office data in a way that's consumed, all of that can be complementary to or even replace a client's data ecosystem. So we're finding a lot of clients using us to make sure that all of the data is staged appropriately, in context, timely, and at quality so that they can focus on real value creation in the investment process and or client service process.
Supporting Growth Through Flexibility
One of the benefits of having both platform and services together, we're able to not only provide the appropriate platform solutions in an interoperable, open architecture construct, but we're able to support all of those services that allows us to take advantage of our global scale, our resiliency, and our control environment to really provide differentiated value while giving the portfolio managers and traders, and their sales and distribution teams, the ability to really focus on their core business and how they add value to their clients.
That is part and parcel of what we do from a services perspective and it's ingrained in our, in the fabric of everything that State Street’s done for now for over 250 years. We've also built into the platform the interoperability and open architecture construct, which allows us to flex as clients continue to evolve and change. That interoperability also comes with the ability to integrate and provide flexible solutions as clients grow. Therefore, if a client, let's say does an acquisition or brings on a new product, we have the capabilities already embedded in the platform and the capabilities from our service perspective, allowing us to really help clients accelerate. They don't have to go out into the market, hire new teams, build new capabilities. We have that capability already there and can support their dynamic growth, whether that's organic, inorganic, team lift outs and the like, we're there to support our clients through that growth.
Leveraging our Partner Ecosystem
We have strategic partnerships throughout the ecosystem that is supported from a foundational infrastructure perspective, like our partnership with Microsoft and the way we use Azure and the way that they help us make sure that we're appropriately resilient and secure. To our partnerships with industry leading platforms like FactSet and MSCI where these are truly production integrations, they're not point to point integrations. They're truly commitments with our partners to integrate with us, to allow the portfolio manager the best possible experience in using those capabilities. The other thing I would say about partners is we, State Street, from a partnership perspective with our clients, fit a unique place in the market where clients are looking to consolidate the number of relationships they have and make them truly strategic.
And that's where State Street can bring our total platform solution. All of these services, including our partners to bear in one relationship with our clients, and clients truly value that outcome.
Accelerating Growth at Scale
That platform experience that we offer, that truly allows the client to focus on the investment process, whether it's public or private markets, being able to experience the portfolio management process, the operations outcomes, trade lifecycle all the way through performance attribution, analytics and risk provides an ecosystem that's truly transformative. That allows our clients really to scale, to go into new markets, to expand their businesses without having sort of the weight of having to build all of those things themselves.
It also gives them security to be able to essentially futureproof their operation. We can flex and grow with them, put them in a position to be able to expand to new markets, enter new asset classes, evolve their business with a strategic partner that can enable that growth.
