The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

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

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.”

Related content

WEBINAR

Recorded Webinar: Trade surveillance: Deploying monitoring and surveillance capabilities for today’s new normal

Let’s face it: The old ways aren’t coming back. A plethora of challenges brought on by the covid-19 pandemic, coupled with unrelenting market volatility and uncertainty, have pushed financial service firms to look for rigorous monitoring and surveillance solutions to meet the demands of the emerging trading landscape. Working from home (WFH) has increased the...

BLOG

Gedik Investment Selects Horizon as Algo Trading in MENA Region Grows

Gedik Investment, a leading brokerage house in Turkey, has chosen Horizon Software as its platform for algorithmic execution of equities on the Borsa Istanbul exchange. Gedik has implemented both the TWAP and POV trading strategies offered by Horizon, allowing the Gedik team to time trades efficiently and instantly benefit from significant changes in price. “The...

EVENT

Data Management Summit Europe Virtual

The Data Management Summit Europe Virtual brings together the European data management community to explore the latest challenges, opportunities and data innovations facing sell side and buy side financial institutions.

GUIDE

Trading Regulations Handbook 2021

In these unprecedented times, a carefully crafted trading infrastructure is crucial for capital markets participants. Yet, the impact of trading regulations on infrastructure can be difficult to manage. The Trading Regulations Handbook 2021 can help. It provides all the essentials you need to know about regulations impacting trading operations, data and technology. A-Team Group’s Trading...