About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Capco Proposes the Creation of a Data Culture to Advance Data Management

Subscribe to our newsletter

Financial firms are falling short on data management issues such as calculating the true cost of data, identifying the operational cost savings of improved data management and embracing social media data, but according to research by consultancy Capco, these issues can be resolved with a cross-organisational and practical approach to data management and the development of a data culture.

The business and technology consultancy’s report – ‘Why and how should you stop being an organisation that manages data and become a data management organisation’ – is based on interviews with towards 100 senior executives at European financial institutions. It considers the many approaches to data management across the industry and within individual enterprises, as well as the need to rethink data management. It states: “There is one certainty: data and its effective management can no longer be ignored.”

The report suggests an effective data management culture will include agreed best practices that are known to a whole organisation and leadership provided by a chief data officer (CDO) with a voice at board level and control of data management strategy and operational implementation. The CDO could be supported by data stewards across lines of business who would be responsible for practical execution of strategy, and would adopt enabling technologies manifested in developments such as data fabric.

Arguing that market developments, a growing burden of regulation and the need to shorten time to market for new products are all driving increasingly complex data management requirements, Capco states ‘doing data differently has become imperative’.

If that is the vision, the reality, at least at the moment, is somewhat adrift. According to the consultancy’s key research findings: awareness of data policies is low among financial institutions; nearly a quarter of the firms surveyed do not understand how data affects profit and loss; nearly half of them manage customer data as a regulatory compliance issue without considering revenue potential; and a vast majority of 80% have not explored the use of social media data and do not understand its value.

On the near neglect of social media data, despite such channels’ emerging use to promote products, Capco partner Lee Murdoch says: “The potential data sets in social media, such as tweets, are huge and financial institutions are faced with targeting a very large universe. Identifying meaningful patterns in social media is time consuming. There is no silver bullet solution.” Highlighting the lack of commitment to unstructured data, firms showed no top priority on how they would use the data. Instead, reducing risk, driving innovation, increasing revenue and lowering costs were all mentioned fairly evenly as top ranking possibilities.

Turning the situation around and attaching practical solutions to the data management vision of an all-encompassing data culture, Capco lists regulatory compliance, risk management, revenue increase, innovation and cost reduction as operational areas where good data management can have a measurable and positive effect on profit and loss.

Setting out how an organisation can create an effective data culture, Capco notes the need to change from being an organisation that is obliged to do a certain amount of data management, to a mandated and empowered data management organisation in which data has ongoing recognition as a key primary source. The report concludes: “Every organisation has the potential, as well as the need, to become a true data management organisation. However, the journey needs to begin now.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: The roles of cloud and managed services in optimising enterprise data management

Cloud and managed services go hand-in-hand when it comes to modern enterprise data management (EDM), but how can the best solutions for the business be selected and implemented to ensure optimal data management based on accurate, consistent, and high-quality data, and delivering improved efficiency, better decisions and competitive advantage? This webinar will answer these questions,...

BLOG

A-Team Group Announces Winners of its Data Management Insight Awards Europe 2023

A-Team Group has announced the winners of its Data Management Insight Awards Europe 2023. The awards recognise both established solution vendors and innovative newcomers providing leading data management solutions, services and consultancy to capital markets participants across Europe. This year’s awards included more than 30 categories of data management solutions and services ranging from Best...

EVENT

TradingTech Summit London

Now in its 13th year the TradingTech Summit London brings together the European trading technology capital markets industry and examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

Corporate Actions USA 2010

The US corporate actions market has long been characterised as paper-based and manually intensive, but it seems that much progress is being made of late to tackle the lack of automation due to the introduction of four little letters: XBRL. According to a survey by the American Institute of Certified Public Accountants (AICPA) and standards...