Solutions Market Perspective Series: An Interview with RBC Investor Services' Anunaya Ritwik

The investment management industry is modernizing its data and operating foundations—driven by fintech innovation, evolving investment strategies, cost and regulatory pressures, and heightened client expectations around transparency and control.

We recently sat down with Anunaya Ritwik, Managing Director, Data & Digital at RBC Investor Services (RBCIS), to discuss how these forces are shaping their services strategy and influencing the conversations happening with the industry.

In conversation with Citisoft’s David Bates, Managing Partner North America, Anunaya shares how RBCIS is approaching data governance, digital enablement, and scalable operating models to help clients navigate increasing complexity without losing sight of trust, resiliency, and execution.

This article is part of Citisoft's Solution Market Perspective Series, which explores how leading service providers are responding to shifting client needs across the investment management ecosystem.

The investment management industry at large is experiencing considerable change, from dramatic strides in technology to the growing prevalence of private assets. Against this backdrop of change, how are you seeing client needs evolve?

The investment management industry is undergoing significant transformation, driven by technological advancements and the increasing presence of private assets. We’re seeing a shift in the investment patterns among pension managers and asset owners, particularly with the introduction of additional certifications and alpha strategies. There’s a strong market push to optimize portfolios, flows and data, and toward greater visibility and control. This trend is evident across all our clients, other data providers—and even among our competitors. It’s a common pressure point in the industry.

There’s a growing realization that technology and data are powerful differentiators. Those who can effectively leverage these tools to reduce operational risk and enhance efficiency will emerge as dominant players. Private equities, with their unique characteristics like irregular cash flows and capital cycles, present a particular challenge. Integrating these into an ecosystem dominated by traditional investment instruments requires careful consideration and innovative solutions.

It’s impossible to ignore the importance of data in today’s landscape, especially when discussing artificial intelligence (AI) and its disruptive role in the industry. But while AI has many uses, it’s important not to rely solely on it. A balanced approach—one that combines AI with other tools and human expertise—is crucial for long-term success.

All in all, the investment ecosystem is undergoing some big changes—and our clients want to keep pace. To navigate this transformation successfully, they need robust solutions encompassing data, models and operational flows. They’re looking for trusted, single sources of truth that can support their investment decisions in a highly volatile environment.

To stay ahead of clients’ changing needs, what is RBCIS’ top priority today? Does your focus on the Canadian market lead to any nuances in prioritization?

Our top priority is simplifying complex data for our clients, which is part of an end-to-end model that starts with the collection and assessment of raw data from existing platforms. We’ve developed a robust data ecosystem that consolidates and normalizes data, providing clients with a unified view. Clients are also increasingly concerned with data security and residency, particularly with the rise of cloud-based platforms and the need for due diligence on third-party providers. This is particularly important in the Canadian market, where data residency is a key driver. In fact, many client agreements require data to remain within Canadian borders, and we’re committed to meeting those requirements.

We also understand that clients are facing anxiety and a fear of missing out due to the rapid pace of change. To address this, we’ve introduced Digital Releases—a single release of enhancements to digital experience tools that help our clients to interact with their data in a more transparent way. For example, foreign exchange (FX) clients can now submit instructions through a digital portal, a capability that wasn’t available before, but as part of the Digital Release the clients also get enhanced reporting features and data extraction capabilities along with accessible and inclusive design features for an improved portal user experience.

Timeliness and control are also critical. As market pressures dictate faster processing times, such as the move to T+1, we’ve invested heavily in shoring up our data models. This ensures that we can provide clients with data in a timely manner, meeting market expectations and helping them make informed decisions.

How are today’s conversations around target operating model different than those you’ve had in the past?

Today’s conversations are very different from those in the past, mostly due to an increased focus on data governance and scalability. While past discussions might have centred more on operational efficiency and cost reduction, nowadays, emphasis is more on a more data-forward approach. And this change in mindset is evident across the financial services sector.

We’ve seen asset owners and managers actively engaging in forums, publications and blogs, exploring ways to become more data-minded in their operations. The decision-making process between in-house operations and outsourcing is more nuanced, with firms considering factors like data security, residency, and the need for scalable data architecture. The conversation has evolved from in-house operations versus outsourcing to a focus on process improvement, governance and control.

Instead of simply adding more personnel, firms are now looking to implement better processes and leverage specialized vendors. For example, partnering with companies like Equilend for asset lending allows us to benefit from their expertise and thought leadership. This approach improves transparency and operational flows, ultimately enhancing the overall asset servicing experience.

The shift toward prioritizing scalable data architecture from the start allows for faster data flow, easier integration and long-term flexibility, which are essential in today’s rapidly changing environment.

As foundational as data management is to operating models, it’s a common challenge for many asset managers and owners—from your perspective, what’s needed today for a successful data management function?

A successful data management function today requires a robust governance model that ensures data is safe, secure, accurate and trusted by clients. From data access and architecture to accountability and ownership, our recent Getting Data Right whitepaper lays out what’s holding asset owners and managers back from delivering value through data and what forward-looking leaders are doing to move ahead.

This includes a central, multi-disciplinary governing body that oversees data activities and ensures they align with business objectives. Additionally, appropriate governance around data access is essential, utilizing secure permission management applications to protect data from unauthorized access, disclosure or modification. The function must also be agile enough to adapt to changing regulatory requirements and client demands, particularly around data residency and cybersecurity. Finally, investing in transformative technology and automation is key to staying ahead, as it enables the delivery of quality data that supports informed decision-making and enhances portfolio performance.

The primary bottleneck we’re seeing in the industry is the challenge of balancing old, trusted technology with new innovations. Decades of reliable systems have served us well, but the market is demanding a shock to the system with the introduction of data disruptions, AI and other advancements.

Data fragmentation, new asset classes and timeliness concerns (e.g. the move to T+1) are creating a sense of urgency. The window for action is tightening, and asset managers need to modernize their approach.

At RBCIS, we’re addressing these challenges through a three-pronged strategy:

• Cloud-native data platform: Building on our established cloud data platforms, we’re scaling our infrastructure to move away from localized, on-premises limitations. This enables us to better address big data challenges and provide higher resiliency and availability.

• Orchestration layer: This acts as a buffer between old and new systems and between our technology and the client’s needs. Clients don’t care about the age or complexity of our systems; they care about outcomes. This layer ensures timeliness, completeness and a seamless experience, stitching together various data sources behind the scenes.

• Data quality and governance: We prioritize data quality, governance, cleanliness and sovereignty. Our orchestration layer provides transparency and predictive data quality checks, alerting us to potential issues before they become problems.

What is RBCIS doing to invest in the next generation of data and technology solutions to help clients unlock the potential of their data?

As guardians of clients’ highly valuable portfolio data—the “new gold”—RBCIS is leveraging RBC’s vast technology resources to enable data for clients as part of our robust data and digital capabilities.

Within RBCIS, we’re helping our clients transform raw data into clean, quality, and accessible data for clients, with a strong emphasis on data curation and governance. We’ve started to leverage applied analytics to anticipate trade failures based on prior events, helping clients reduce risks and increase efficiency. Additionally, we’re prioritizing scalable data architecture to ensure faster data flow. It’s important for us to stay ahead of the curve and help clients unlock the potential of their data in an increasingly complex and volatile market environment.

But our biggest flex comes from being a part of the broader RBC infrastructure. The company is investing heavily in digital teams across the enterprise, with a particular focus on cybersecurity and emerging technologies like AI. RBC’s commitment to innovation is evident in its ranking as #3 in the Evident AI Index and its position as the second-biggest provider of technology and solutions in Canada, next to the government. The “mothership” is building out an ecosystem of best-in-class technology, services, and processes, and RBCIS is a massive beneficiary of these investments.

All these investments—both within RBCIS and the broader RBC business—ensure we remain at the forefront of the industry, delivering exceptional value to its clients.

For more information on what other solutions providers are doing in this space, read our Solutions Market Perspective Series