New research by Fenergo and FIMA also shows that data sharing between different parts of an institution remains difficult and prone to manual effort
New data management research published today by Fenergo and FIMA (Financial Information Management Association) shows that regulatory/compliance data requirements and existence of data silos are top priorities and areas of concern for financial institutions in 2013.
The 2013 Financial Data Management Benchmarking Report compiles the survey responses of 110 participants at the 2013 FIMA conference held in Boston a few months ago.
The results show that 36% of respondents rank regulatory/compliance requirements with respect to their data management strategy as a top priority for their financial institution this year. In commentary provided in the report, a leading investment bank expressed surprise that this number wasn’t higher given “all of the compulsory work around Dodd-Frank/CFTC requirements, EMIR counterparty classification, LEI adoption and other reporting requirements that are so consuming of resourcing, especially in the legal entity space”.
Furthermore, the survey results reveal that the top reference data management challenge facing institutions is the continued existence of data silos, which ranked first and second in severity for 50% of respondents. Over half of financial institutions (51%) claimed that sharing data between different parts of the organization is difficult and requires manual effort for each sharing task, a percentage that has not improved since last year’s report.
According to Marc Murphy, Fenergo CEO, “Data management is a monumental challenge for financial institutions this year given the amount of financial regulation that is heavily dependent on high quality data for compliance. While this research shows definite strides in the right direction towards eliminating silos, improving accuracy of data flow and facilitating data sharing across the financial institution, there remains some serious challenges for institutions.”
He continues, “The re-usability of data and documentation across various parts of the institution for multiple regulations is a vital component of being able to comply with regulations simultaneously. To do this, institutions need to eliminate data silos and adopt an enterprise-wide capability that enables the cleansing and remediation of client and/or counterparty data and facilitates data sharing between key parts of the institution with little or no manual intervention. While certainly not an easy undertaking, it is most definitely achievable.”
In other findings, the report also reveals that 15% of respondents claim to have a Chief Data Officer in their institutions, with a further 34% moving towards that direction.
The 2013 Financial Data Management Benchmarking Report can be downloaded from http://www.fenergo.com.
Fenergo will be exhibiting and speaking at the forthcoming FIMA conference in London in November.
About Fenergo ( http://www.fenergo.com ):
Fenergo is an award-winning provider of enterprise-wide Client and Counterparty Data Management, Enterprise Compliance and Client Onboarding Lifecycle Management software solutions for financial institutions. Its market-leading enterprise platform is designed to streamline, simplify and rationalize the often complex operational interactions of client lifecycle management. It achieves this by orchestrating client and counterparty data management, onboarding, regulatory, compliance and KYC activities across all the touch-points within the bank.
FIMA was started in 2004, and is regarded as the premier reference data management, counterparty risk, and data innovation conference. FIMA was created by the Data Management Community, for the Data Management Community; it brings together 250 leading reference data management professionals, all covering topics that are of fundamental importance to enterprise-wide data management initiatives.
Source: FIMA http://www.wbresearch.com/fimausa/home.aspx