01 March 2021

The new concept of cooperation among asset allocators

In the last 20th century, competition represents a critical factor for ensuring development. It plays a crucial role in stimulating creative problem-solving skills and indeed avoids conflict of interests. However, according to Yuval Noah, the author of "Sapiens a brief history of mankind", the key to success lies in the ability to cooperate and believe infiction. The Sapiens secret of success is large-scale flexible cooperation.

Cooperation is most commonly defined as groups of individualsworking oracting together for common, mutual, or some underlying benefit instead of working in competition for selfish benefit.

By contrast, Game Theory takes a slightly different perspective on it. As Game Theory studies cooperative behaviour by placing players in a game scenario, it defines cooperation asa competition between groups of players ("coalitions") due to the possibility of external enforcement of cooperative behaviour such as legal enforcement. To put it simply, you will cooperate if the payoff is bigger when you betray each other than when you cooperate.

Role of cooperation in our complex investment sector

Cooperation among allocators in the investment sector is, by all means, indispensable when bringing transparency and adherence to best practices that serve their needs more effectively. But is this enough? Is there a way to enhance our existing cooperation modes to unlock long term value?

The increasing interdependence of the investment community fosters continuous and constructive collaboration for greater asset allocation efficiency. Cooperation is increasingly going global, as evidenced by our ability to work cohesively with anyone we barely know outside the virtual conference room. As we move closer to the virtual world, it is essential to strengthen cooperationto adapt to these new realities. Undoubtedly, in the current times, it requires agility to preserve capital for the benefit of an ever-increasing number of principals and beneficial owners.

So how does it impact your long term vision of your job and organisation? Does this mean that cooperation requires simplified access to high qualityand relevant information?

At Finlight, we believe that cooperation among allocators helps unlock long term value for the benefit of all. Our portfolio consolidation software aggregates all relevant value-adding information for more transparency. The ability to aggregate and enrich data quickly and efficiently within a click of a button saves allocators' precious time and costs.

This is where our artificial intelligence and NLP technology advances your money management to a next-level efficiency. It removes all cumbersometasks of consolidating data, and presents a 360 degree asset overview for better oversight in a matter of minutes.

By using an advanced machine-learning model, our solution extracts all relevant information needed and formats it in any way to feed into other tools and produce various analysis for more rapid decision-making. We enrich such data by complementing it with trustworthy third-party analysis and sharing it with key stakeholders to improve cooperation further.

To conclude, cooperation among allocators plays a significant role in scaling our business in the complex investment world through sharing capabilities and increasing transparency across the sector. It is time for usto cooperate to make the investment sector a better and simpler world, with greater transparency and efficiency.

At Finlight, we make portfolio reporting data more manageable, easier to integrate and secure through our seamless data workflow. Learn more about how we bring your financial capabilities to the next-level.

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