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EDM Needs C-level Champion to Break the Silo Habit, Finextra Survey Shows

C-level executives at some of the world's leading financial institutions have revealed enterprise data management (EDM) initiatives are yet to realize their full potential, despite being a business priority. An independent Finextra research survey, commissioned by GoldenSource Corporation, provides insight into current EDM practices and the business challenges and benefits these are presenting.

The key findings of the report were:

  • The majority of organizations (47 percent) claim to already have an enterprise data strategy supported by top management. However, while most organizations said they want to centralize responsibility for data management, several respondents commented that they knew of only one tier one financial group that has taken the step of creating a dedicated C-level role responsible for data management.
  • Risk management and business enablement are the key business drivers for investment in enterprise data management. For larger firms it is also seen as key to facilitating new areas of business such as algorithmic trading. Rather interestingly, it is better client and internal reporting that are seen as the major benefits to be gained from the investment.
  • Complexity of legacy IT systems is still the most common hindrance to realizing enterprise data management and lack of concrete return on investment (ROI) is making raising budget more difficult. Despite this, 65 percent of firms expect to spend more money on enterprise data management in the next financial year. Financial services firms understand the intrinsic value that data has as an enterprise asset.
  • Most organizations are happy that reporting on positions exposure tends to be an end-of-day activity. If required to do this on an ad hoc, intraday basis, for instance in the event of a market crash, less then half (47 percent) said they could generate this information within four hours and only 18 percent within the hour.
  • Although 46 percent of respondents think the raft of data management initiatives undertaken across the industry in recent years have helped to improve the number of failed trades due to poor reference data, a significant 27 percent think the situation has become worse. This is attributed mainly to growing trade volumes in more sophisticated instruments such as credit derivatives.
  • Although very few organizations said they would be unable to identify the top 10 revenue-generating customers across their business, most said it would require some level of manual extraction from several data warehouses. A well-executed EDM strategy is at the heart of solving these types of challenges and growing revenues.
  • 65 percent of respondents think mandatory electronic filing of reports is inevitable and likely to arrive within the next few years.

To download a copy of the Finextra EDM survey report go to http://www.thegoldensource.com.


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