Asset Management Driven By Data Analytics

Francesco Giordano, Head of data technologies, Generali Investments

Francesco Giordano, Head of data technologies, Generali Investments

Francesco Giordano, Head of Data Technologies at Generali Investments, is a seasoned professional committed to helping enterprises with their data, analytics, and machine learning journey. With years of industry experience, he consistently tries to make the asset management industry more data-driven. He is implementing data mesh architecture along with cloud transformation. With the support of a talented team and by collaborating with different business departments, he creates and manages a cloud data platform to work as a common infrastructure for all the data as a product solution that Generali Investments has launched.

In an interview with Banking CIO Outlook Europe, Giordano discusses the changes and challenges in the industry and the need to invest in AI.

What are some of the challenges prevailing in asset management, and how can they be mitigated?

There has been much financial turbulence lately, including geopolitical disturbances and the pandemic. In addition, the explosion of generative AI poses numerous defensive and regulatory risks. To tackle the risks, we look forward to using it to our advantage. Generative AI can be useful in asset management and the financial market.

The finance sector must reconsider itself regarding including new technology, improvements in generative AI, and, most importantly, data technologies. AI and data analytics can offer a huge return on investment for businesses. Having a more data-driven mindset can help organizations provide better services to clients. However, when the business value is not clearly delivered, companies will be reluctant to invest further in AI and other technologies.

“It is essential for every company in the industry to use technology to improve its services and take a more data-driven approach.”

A unique corporate role dedicated to data analytics can improve the way data is handled and help organizations strategize better. Large companies have built a governance infrastructure of people policy processes and stewardship models to enhance the trustworthiness of the data across the organization. Many experiments have been carried out in this regard, and we are more proactive. I work with my team to create all aspects of data infrastructure, such as processes, functions, and tools, and build a data governance framework. Although the benefits of these implementations aren’t quantified or recognized, an agreed-upon metric can be used to measure the progress and understand the benefits.

Can you explain the measures organizations can take to deal with these challenges currently?

The asset management sector is undergoing a significant cultural change. It is essential for every company in the industry to use technology to improve its services and take a more data-driven approach. This goes beyond having technological tools, and companies must consider investing in specific experiments that would let us understand more about the capabilities of the tools we possess rather than investing in them arbitrarily.

Asset management companies must reconsider their processes, starting from strategizing to having structures dedicated exclusively to technology, and managing technology and initiatives must change radically. These cultural changes are long-term and affect the entire workforce. We need to be equipped to adapt to these rapid technological changes, work and think differently. Organizations must also be motivated to incorporate advanced technologies and new ways of working, including acquiring new companies. We need to learn to act quickly.

How do you envision the future of the industry?

Asset management companies have been investing in generative AI due to its potential benefits. We must support any advancement in the area as it could solve many issues. Organizations are investing in AI to leverage its capabilities to solve many problems, including portfolio management optimization, robot advisory, risk management, research, and trade.

As an organization, we have been working on leveraging the different advancements in technologies like blockchain and quantum computing. The industry is moving forward in incorporating technology, and Generali is looking forward to driving the initiative and investing in new technology. 

What is your advice for the budding professionals in the field?

The budding professionals and entrepreneurs can follow a data-driven path and have a corporate role dedicated to data analytics. Assistance from top-tier professionals like CEOs could achieve many benefits. AI is in the light now, and when backed by robust data-oriented technologies and a solid framework concerning data, it can take an asset management business miles ahead.

AI

Financial

Risk Management

Machine Learning

Blockchain