June 13, 2024

Tier1's Key Takeaways from Unbundling Uncovered New York 2024

By Tier1

It was a pleasure getting to connect with everyone at Unbundling Uncovered New York 2024. Thank you once again to the Substantive Research team for putting on another great program!

Gain the latest insights from Doug Christensen, VP SS&C Tier1, on the state of research from regulatory alignment, data, research and the future vision for innovation.

How do you think impending greater regulatory alignment between North America and Europe will affect the demand, supply, and funding of research?

"I anticipate that impending regulatory alignment between North America and Europe will have a neutral impact on research findings in terms of revenue and costs. However, I do foresee an increase in providers adopting CSAs (Commission Sharing Agreements) in the future, which could help streamline payment processes". - Doug Christensen, VP SS&C Tier1 


What are the implications for research valuation processes on the buy side? What does not change?  
The buy side has long engaged in research valuation processes, which have evolved to become more transparent to providers. Over time, improvements have been made in evaluation methods. Asset managers are now more mindful of their expenditures, striving to ensure value for money. Consequently, they tend to concentrate on spending with top providers and streamline their lists. Additionally, there's a growing reliance on benchmarking services to enhance competitiveness in negotiating various services, such as research, corporate access, or market data.

Where has new technology changed the research market most in the last couple of years, and where will technology spur the greatest changes in the near future?
In recent years, technology has significantly enhanced the efficiency of parsing, screening, and reviewing published research and data for the buy side. Looking ahead, AI holds promise in summarizing content, enhancing analysis, and facilitating decision-making by swiftly correlating vast inputs, identifying outliers, and enabling faster digestion of information. This could lead to improved assessment and quicker actionable outcomes to support investment decisions. 


Where should research providers focus their efforts in order to remain competitive? Where are the strongest opportunities for them? 
Research providers need to prioritize value-added services, customized engagements, and harness technology for efficiency gains through automation and client servicing. Ultimately, their advisory expertise, industry knowledge, and relationships with covered companies will remain key drivers of value. 


If technology can do so much more now, what does that mean for how firms hire and train their talent? How will that affect demand and supply for research and data in future?  

As technology advances, firms must adjust hiring and training strategies to meet evolving demands: 

  • Specialized skills like data science and AI are increasingly sought after. 
  • Upskilling and reskilling programs will be vital to keep pace with rapid technological changes. 
  • Remote work options expand the global talent pool, requiring adaptation to remote collaboration tools. 
  • Data-driven recruitment enhances candidate selection and fit prediction. 
  • Soft skills like critical thinking gain importance alongside technical expertise. 

Regarding research and data: 

  • Growing reliance on data for decision-making increases demand for high-quality data. 
  • Concerns over ethics and privacy necessitate compliance with regulations. 
  • Real-time data becomes crucial for agile decision-making, requiring faster processing. 
  • Interdisciplinary research fosters innovation but demands cross-disciplinary talent. 
  • AI and automation accelerate data analysis, though human oversight remains essential. 
  • Transparency in algorithms is vital to maintain trust and compliance. 

In conclusion, firms embracing these changes will thrive in a tech-driven future.