Why Investment Firms Should Move Their Proprietary Modeling from MS Excel To Bespoke Software?



There are several reasons why investment firms should consider moving their proprietary modeling and analytics from Microsoft Excel to bespoke software. We have discussed a few of them in brevity below.


Excel is limited in its ability to handle large datasets and complex calculations. As investment firms grow and handle more data, bespoke software can provide the scalability required to process and analyze vast amounts of information efficiently.

Data Integrity

Excel files can be prone to errors, especially when multiple users are involved in data entry and manipulation. Bespoke software can incorporate robust data validation checks and enforce data integrity rules, reducing the risk of human error and ensuring accuracy in calculations and analysis.

Customization & Flexibility

Investment firms often have unique modeling and analysis requirements specific to their strategies and investment approach. Bespoke software allows for customization and flexibility to meet these specific needs, enabling the development of tailored features and functionalities.

Performance & Speed

Excel can become slow and inefficient when dealing with complex calculations, large datasets, or extensive models. Bespoke software can be optimized to leverage advanced algorithms and computational techniques, delivering faster processing speeds and improved performance.

Collaboration & Version Control

Collaborating on Excel files can be challenging, with issues such as version control and data consistency. Bespoke software can provide a centralized platform for collaboration, allowing multiple users to work simultaneously on models and analytics while maintaining data integrity and version control.

Security & Risk Management

Excel files are susceptible to unauthorized access, accidental deletions, or accidental modifications, which can pose significant security and risk management concerns for investment firms. Bespoke software can incorporate robust security measures, such as user access controls and data encryption, to protect sensitive information and mitigate operational risks.

Integration Capabilities

Excel is limited when it comes to seamless integration with other systems and data sources. Bespoke software can be designed to integrate with various data providers, APIs, and other software systems, enabling investment firms to leverage a wide range of data sources and automate data retrieval and processing tasks.

Key Takeaway

While Excel is a useful tool for many purposes, investment firms dealing with complex modeling and analytics can benefit from transitioning to bespoke software. It offers scalability, customization, improved performance, collaboration capabilities, enhanced security, and integration with other systems, ultimately enabling more efficient and effective investment decision-making processes.