Data connectivity in fund management is mission-critical. Still, 48% of asset managers cite the speed of inbound data as a central challenge to effective decision-making. With the industry expectations changing, fund managers cannot afford to rely on siloed data systems or delayed signals.

They must integrate interoperable structures that support smooth data connectivity in fund management via cloud-native platforms, open APIs, and AI-driven insights. 

In this guide, we walk you through fund management trends that shape the industry, technology supporting real-time decision-making, and how to future-proof your fund and stay competitive.

Key Trends Driving the Future of Data Connectivity

Data connectivity in fund management is becoming a central differentiator in digital-first fund operations. Here are the trends that shape how firms gather, link, and capitalize on data.

1. Real-time decision-making powered by advanced data integration

The demand for real-time trading insights is pushing asset managers to adapt advanced data integration technologies. These are crucial in high-frequency trading, where even a fraction of a second delay can translate into missed profits.

APIs are key to this future of data connectivity. They link platforms such as trading systems, CRMs, compliance tools, and fund accounting software, helping eradicate data silos. This is done in real time, ensuring data precision across departments and enabling firms to act on insights promptly.

For example, hedge funds now capitalize on sentiment analysis APIs to assess public opinion from news sources and social media. They then integrate the insights with live trading data to modify positions dynamically. Likewise, real-time economic signals are added into portfolio management structures to adjust asset allocation spontaneously. 

2. AI and machine learning as catalysts for smarter fund operations

The future of fund reporting is shaped by emerging technologies in asset management that define how financial data is collected, processed, and transmitted across platforms. This shift in data connectivity in fund management improves decision-making, transparency, and fortifies compliance.

AI and machine learning have already shaped portfolio optimization and risk governance. Notably, the current global AI in asset management stands at USD 4.62 billion, and is anticipated to reach USD 38.94 billion by 2034.  

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Still, over 90% of asset managers are already capitalizing on disruptive tools such as AI, blockchain, and big data to boost investment performance. Such technologies help systems process large amounts of financial and behavioral information, improving predictive risk analytics.

In particular, AI aids in performance attribution, trade execution, risk modeling, and client reporting. According to a May 2025 study, the use of generative AI in portfolio management reduces portfolio volatility by 15-20%, rebalances cycles 30% faster, and improves client onboarding efficiency by 40%.

On the other hand, blockchain technology has a decentralized structure that ensures data traceability and immutability. This aspect is pivotal in spaces where investor trust and auditability are sacrosanct. 

Even so, to ensure the effectiveness of these technologies, fund managers must prioritize structure and high-quality datasets. Otherwise, siloed data can misrepresent predictive outcomes with flawed predictions, making them unreliable.

3. ESG and sustainability: the role of connected data in impact investing

As investors cautiously match portfolios with social and environmental values, the demand for reliable, consolidated ESG data is increasing. To match this trend, fund managers’ decision-making now incorporates non-financial metrics such as board diversity, carbon emissions, and community impact.

Many firms are now integrating structures and data lakes that centralize ESG metrics from disjointed sources. Talk of third-party ratings, in-house analysis, and supplier disclosures. This consolidated strategy enables real-time monitoring of performance and impact, with a more holistic display of portfolio health.

Additionally, the growing regulatory pressure for firms to disclose their social and environmental impact has expanded the ESG markets to $35.48 trillion, expected to reach $167.49 trillion by 2034. Interestingly, in a joint Deloitte survey, 39% of U.S investors cited regulatory pressure as the key driver for integrating sustainability factors. This highlights how crucial ESG has become to the current fund approach.

4. Regulatory compliance through connected, auditable systems

As regulatory structures, like the SFDR and the U.S. SEC’s proposed climate-related disclosures, advance globally, fund and asset managers face intensified pressure to offer verifiable, transparent data on financial and non-financial performance. Surprisingly, FIs are dedicating 15% of their staff and 10% of their annual revenue to meet regulatory compliance demands. 

This figure highlights the need for more automated, efficient, and linked data systems. It pushed fund managers’ demand for integrated data architectures that focus on traceability and data governance in asset management. By developing a powerful data lineage, they can ensure each value in a report can be traced down to its origin. 

The structures support real-time verification and version control, helping fund managers stay audit-ready, avoid reputational damage, and lower compliance risk. They also allow data to be shared across teams, investors, and regulators, refining reporting procedures at scale.

5. The cloud-native fund: digital infrastructure as a competitive edge

The asset management industry is going through a radical restructuring, with a shift from rigid, localized structures towards flexible, cloud-native funds. These platforms are often developed on hyperscalers such as Google Cloud, AWS, or Microsoft Azure, with real-time collaboration, global scalability, and auto-updates. 

By facilitating effortless data integration in finance, cloud infrastructure lowers reporting latency and improves disaster recovery and cybersecurity posture. Notably, 91% of FIs globally utilize cloud services, with several using multi-cloud approaches to boost resilience, and 68% to balance security and operational flexibility. 


For example, RAISE, a cloud-based fund management solution, offers flexibility to scale your operations and adapt as your business demands shift. The platform supports remote collaboration and smooth integration of fund management tech, boosting process efficiencies for fund managers. Cloud-based operations are a strategic advantage, and firms that embrace them are better placed to innovate, scale securely, and sustain their operations with ease.

6. Talent and culture: building data-first teams in asset management

Besides technology, success in fund management also depends on the people who use it. Firms are actively searching for professionals skilled in financial management and data analytics, such as quantitative researchers, data analysts, and data-astute portfolio managers. Shockingly, a McKinsey survey indicates talent availability as a key barrier to increased use of innovative data solutions in credit portfolio management.

Spearheading a culture of digital and data fluency helps teams to make prompt, smarter decisions. In fact, 67% of equity firms attest to digital literacy improving deal sourcing capabilities, while 78% recognize it as crucial for future growth. 

To match these talent demands, firms are embracing upskilling programs such as:

  • ・Internal data bootcamps encompassing tools such as Tableau, Python, and Power BI
  • ・Collaborations with learning platforms like DataCamp and the CFA Institute for sought-after technical training 
  • ・Inter-departmental mentoring between portfolio teams and data engineers to boost knowledge transfer

Therefore, fund managers should embrace talent, business acuity, data proficiency, and a culture that prioritizes continuous learning to drive better-informed strategies and decisions.

Looking Ahead: What’s Next in Data Connectivity in Fund Management?

As fund managers traverse a data-focused future, various central innovations are on the horizon:

  • ・Blockchain and tokenization: Offer new ways for boosting security, automating fund processes, and allowing real-time asset settlement.
  • ・Cross-border sharing and system data interoperability: Data frameworks, open APIs, and regulatory pressure are driving more refined data exchanges across jurisdictions and platforms.
  • ・Investor experience: Fund managers are discovering tools that improve personalization reporting, provide AI-driven insights, and boost transparency, as investors demand intuitive, self-service platforms.

Connected Infrastructure for a Competitive Tomorrow

The fund management industry is going through a significant shift driven by the increasing investor expectations, digital transformation in fund management, and regulatory demands. With that, the message is clear: data connectivity in fund management is a top priority. 

The data trends aren’t distant possibilities either. They are currently steering asset managers in operations, cooperations, and value delivery. It’s only those who proactively act who will boost performance and compliance, and gain a sustainable edge in future data connectivity.

At RAISE, we support future-focused fund managers with a unified platform that refines fund administration, investor communication, compliance risk evaluation, and portfolio tracking. Dashboards and alerts are centralized to help you turn scattered data into clear and actionable insights.

Ready to take control of your fund operations? Contact us today to see how our integrated solutions can help you achieve more.

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