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

We Can’t Solve the Problems with the Same Thinking That Created Them; Radical Solution is Required to Solve Data Problems, says Avox’s Price

Subscribe to our newsletter

Radical thinking on industry business models is needed in such disastrous times, proselytised Avox’s Ken Price at FIMA this morning. He suggests turning the traditional ‘user in the middle sources multiple vendors’ model on its head so that the users, who after all generate most of the data themselves, become the centre of the model and work alongside vendors and other bodies such as tax authorities, registration authorities, and regulators and more. “There’s a huge amount of power in collaboration,” he said.

Highlighting the value that users already have, and that he suggests can be realised through working through vendors such as Avox, Price says that 70% of changes that are made to the Avox database are triggered by feedback from its clients. He acknowledges that many institutions remain uncomfortable with such an approach, but suggests it is a valid approach to addressing data problems.

“What we’re doing here is preventative maintenance. What is the cost of incorrect data if you do not do this?” he questioned. Citing a client example, the client could not correctly identify the risk level associated with any of its own clients resulting in the regulators insisting those clients were categorised as high risk. The implication was that the firm had to increase the capital withheld for potential losses associated with those clients, to the tune of £10 billion. By then addressing the data and risk classifications of its clients this capital was freed up, enabling the firm to invest elsewhere. “The £10 billion number was directly linked to data management by our client,” said Price.

Also, quoting from a recent study commissioned by Avox majority shareholder Deutsche Borse, the average risk event cost has been calculated to be $20 per event. In the banking sector there have been 90 such recorded events and 45 in the brokerage sector in the course of the year. At this level, the suggested budget that should be put aside to cover the losses stemming from these events is $4 million per year.

By addressing data management in a more radical way, and harnessing the power of the users’ own data through collaboration, the significant benefits of improved quality, reduced cost and increased flexibility can then be realised, said Price.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: In data we trust – How to ensure high quality data to power AI

Artificial intelligence is increasingly powering financial institutions’ processes and workflows, encompassing all parts of the enterprise from front-office to the back-office. As organisations seek to gain a competitive edge, they are trialling the technology in variety of ways to streamline and empower multiple use cases. Some are further than others along the path to achieving...

BLOG

Buy-Side Faces Structured, Unstructured Data Challenge: A-Team Group Webinar

Buy-side firms are far from satisfied with their present data management strategies and are still struggling to deal with hoary old challenges such as data silos and legacy tech stacks that are inadequate for their modern needs, according to the latest polling from A-Team Group. Only a fifth of respondents feel positively about how they...

EVENT

ESG Data & Tech Briefing London

The ESG Data & Tech Briefing will explore challenges around assembling and evaluating ESG data for reporting and the impact of regulatory measures and industry collaboration on transparency and standardisation efforts. Expert speakers will address how the evolving market infrastructure is developing and the role of new technologies and alternative data in improving insight and filling data gaps.

GUIDE

A-Team Group’s Valuations Vendor Directory 2009

An indispensable guide to valuations professionals seeking providers of services in the asset valuations market. A-Team Group’s latest release in its series of directories – available for FREE download – focuses on vendors of valuations data, models and analytics. But this is not just another list of firms with their telephone numbers – you can get that...