Mosaic Smart Data, a provider of real-time capital markets data analytics, has revealed the challenges front offices in investment banks face when attempting to get their data in a fit state to deploy AI-powered analytics for improved efficiency, productivity and profitability.
Mosaic research found data quality and integrity is a critical challenge with 66% of banks struggling with data quality and gaps in important data points; 83% with no real-time access to transaction data and/or data analytics; and 66% saying the data that is most useful for analytics is challenging to access. Reference data is unfit for purpose, with 50% of banks having reference data with no unified counterparty identifier, especially for client static data, and sometimes the data is missing altogether.
Matthew Hodgson, CEO and founder of Mosaic, comments: “No powerful analytics or AI can fully function if data is not normalised, maintained in an orderly fashion and gaps in the data enriched. Now is a crucial time to invest in data and analytics for the front office – but ROI must be guaranteed in the current economic climate, and this begins with better data health.”
The research covered six million Fixed Income Clearing Corporation (FICC) transactions from global and regional investment banks in South America, US, Canada, UK, EU, South Africa, Japan and Australia, and surveyed front office staff including traders, salespeople and quants.
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