Few firms have a handle on data

Few firms have a handle on data

The financial industry needs data standards to help firms reduce costs and manage data-associated risks, according to Brian Sentance, CEO at analytics and data management firm, Xenomorph.

There will likely be a number of conversations comparing solutions for advancing the industries conception of data management at Sibos.

Data in financial markets has never been more important, as regulation coupled with margin pressures and business model restructuring continue to challenge firms.

“However, there are few institutions that have a firm handle on data, leaving most to tackle the questions of accuracy, sources, true costs, quality and so on,” he said. “In response, many firms have made data governance a key business function.”

“Regulators are addressing the challenges, as well. Legal Entity Identifier and BCBS 239 standards for risk data aggregation and reporting are providing more process and structure and industry bodies, such as the EDM Council have offered a hand through solutions such as the Data Maturity Model, which objectively assesses an institution’s data management capability.”

As internal restructuring and regulatory hurdles continue to add to the complexity of data management, the industry should focus on appropriate data standards as the next step in tackling these issues.

Data standards are essential to controlling costs and understanding associated risks in data management, Sentance said.

“To-date the financial services industry has not implemented a solid structure,” said Sentance.

“While firms will continue to focus on the daily pressures of operational and regulatory reporting, they should evaluate their day-to-day use of data, looking at how multiple data users can contribute to strengthening the data quality process, ideally leading to reduced cost and time to market across the board.”

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