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

Decision-Making, Not Compliance, Drives Data Governance Programs

Subscribe to our newsletter

Data governance drivers have shifted, with better decision-making now a priority when it comes to data governance decisions – but organizations are still grappling with data governance challenges and still depend largely on manual approaches for data lineage, data cataloguing and data mapping.

So finds data modelling specialist erwin in its latest report on the 2020 State of Data Governance and Automation (DGA), in which 62% of survey respondents citing better decision-making as the primary reason for implementing data governance. By comparison, two years ago regulatory compliance was the main driver, just ahead of the General Data Protection Regulation (GDPR) going into effect.

The new emphasis on decision-making suggests that organizations are now moving towards the use of data to improve their overall performance, rather than merely ticking off a compliance checkbox. However, the survey also revealed some major challenges – with key data governance bottlenecks including the documentation of complete data lineage (62%), understanding the quality of source data (58%), finding, identifying and harvesting data (55%), and curating data assets with business context (52%).

“The results of our new research show that organizations are still trying to master data governance, including adjusting their strategies to address changing priorities and overcoming challenges related to data discovery, preparation, quality and traceability,” explains Erwin CEO Mariann McDonagh. “That’s not surprising considering the amount and complexity of data to manage, plus most data operations are still manual and dependent on IT resources.”

In fact, this latest research reveals that data lineage would be the most valuable process to automate (65%), followed by data cataloguing (48%) and data mapping (53%). But only 25%, 53% and 39% of these processes have been automated, respectively.

“Without an accurate, high-quality, real-time data pipeline, it will be difficult to uncover the information necessary for making the best decisions. Automating data operations creates sustainable and repeatable practices that reduce errors, improve analytics and increase speed to insights,” notes McDonagh.

Worryingly, the survey also found that a majority of the 260 US-based firms surveyed have not yet implemented effective data governance programs, with 38% saying they are a work in progress and 31% only just getting started. Given that over two-thirds (70%) spend 10 or more hours per week on time-sinking data-related activities, effective implementation would seem to be a key priority.

“Businesses still depend too much on manual approaches to data management,” says McDonagh. “Data availability, quality, consistency, usability and reduced latency are at the heart of successful data governance and sound decision-making. In today’s competitive landscape, stakeholders must have confidence in the data underlying the analytics they rely on for both strategic and tactical decisions.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: End-to-End Lineage for Financial Services: The Missing Link for Both Compliance and AI Readiness

The importance of complete robust end-to-end data lineage in financial services and capital markets cannot be overstated. Without the ability to trace and verify data across its lifecycle, many critical workflows – from trade reconciliation to risk management – cannot be executed effectively. At the top of the list is regulatory compliance. Regulators demand a...

BLOG

Data Surge Argues for Enterprise-Grade Lineage: Webinar Review

The ingestion of growing volumes of data into financial institutions’ systems is posing a pressing challenge as data managers seek to optimise their data lineage, according to the latest A-Team Group webinar. Being able track data as it enters and is distributed within organisations is essential for prising the most value from that information. However,...

EVENT

AI in Capital Markets Summit London

Now in its 2nd year, the AI in Capital Markets Summit returns with a focus on the practicalities of onboarding AI enterprise wide for business value creation. Whilst AI offers huge potential to revolutionise capital markets operations many are struggling to move beyond pilot phase to generate substantial value from AI.

GUIDE

Regulatory Data Handbook 2025 – Thirteenth Edition

Welcome to the thirteenth edition of A-Team Group’s Regulatory Data Handbook, a unique and practical guide to capital markets regulation, regulatory change, and the data and data management requirements of compliance across Europe, the UK, US and Asia-Pacific. This year’s edition lands at a moment of accelerating regulatory divergence and intensifying data focused supervision. Inside,...