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Thomson Reuters and Lepus, the independent research firm, today released the results of a survey highlighting the responsibility fragmented IT systems played in the financial crisis and the role data will play as the market rebuilds.
The survey of data management strategies at over 100 top tier buy- and sell-side firms revealed how more than three quarters (77%) of participants intend to increase spending on projects that address data quality and consistency issues. Firms are increasingly looking to exploit data consistency to support data hungry risk management processes and achieve a more extensive view of risk, with an overwhelming majority (87%) citing improvements in this area as a priority.
The need for clarity of data to facilitate compliance is a key focus for 44% of survey participants, likely driven by the need for data intensive stress tests as firms look to improve scenario modeling for low probability, high impact events following largely unpredicted volatility across financial markets in recent years.
Portfolio management, regulatory compliance, trading, finance, clearing and client profitability were all highlighted as areas that would benefit from an improved data infrastructure, according to the executives who took part in the survey.
Robert Smith, Head of Research, Lepus, said: “A huge majority of firms have looked to revise their data management solutions in the wake of the credit crisis. The results of this survey show that firms are committed to improving data quality and consistency across the organization and are investing significantly in a bid to move closer to their ideal data management solution.”
Jason du Preez, Global Business Manager, Enterprise Platform for Data Management, Thomson Reuters, said: "As the economy recovers, financial institutions are looking to improve and simplify data operations by demanding greater consistency and quality of data across the front, middle and back-office. Through this survey, the industry has outlined the importance of next-generation data management solutions to support effective risk, regulatory compliance and trading strategies."
Thomson Reuters recently unveiled the latest release of its Enterprise Platform for Data Management, the only integrated platform in the market today that unifies the acquisition, management and distribution of multi-sourced enterprise data assets. It incorporates a market standard canonical data model that simplifies data integration and promotes data transparency throughout the enterprise. Not only does the platform handle the aggregation, cleansing and normalization of a firm’s data sources but uniquely addresses new and changing business needs including risk management, compliance and portfolio valuation.
