I don’t have to tell you, reference data management challenges are prevalent in our industry. In fact, like most firms, yours likely also spends millions of dollars on reference data from multiple sources in disparate formats, and then has teams of people trying to manage it so that it’s useful for your business. Despite this effort and expense, data is still considered a problem that has not been resolved. “Why not?” you ask. That’s what I’ll get to today. And in my next blog, I’ll look at what can be done.
Where does the reference data disconnect lie?
To better understand the challenges in data management, we teamed up with Greenwich Associates to survey 133 buy- and sell-side professionals globally. We interviewed the people most affected by reference data to determine where the reference data disconnect lies.
Four key themes and challenges emerged across all survey demographics:
- Quality – Despite significant investments in time and money, quality issues continue to plague the industry.
- Costs – Shrinking margins require increasingly creative approaches to managing costs.
- Control – Regulatory requirements are driving ever-increasing burdens for proving effective control processes.
- Change – Firms continually struggle with balancing streamlining business operations while responding to continual industry change.
Costs and quality were by far the dominant issues across the enterprise. Some 70 percent of respondents cite data quality as one of their most pressing issues and a concern that affects costs. And, when it comes to costs, respondents say regulatory burden is a main driver in increasing costs. In fact, 47 percent of those surveyed indicated they are struggling to meet regulatory requirements.
So, what can be done to set firms on the right path, once and for all? Join me next week when I’ll explore the viable solutions for enterprises.
To learn more, read: