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

Harmonising Data Can Deliver Value, But There Are Caveats

Subscribe to our newsletter

Harmonising data can help firms extract value, but success pivots on issues including the identification of business needs, effective data governance and a focus on data quality.

The potential of a harmonised approach to building a strong data management foundation and reporting capability was discussed at A-Team Group’s recent Data Management Summit during a panel moderated by A-Team editor Sarah Underwood and joined by Sue Baldwin, vendor management expert and independent consultant; Chris Johnson, senior product manager, market data at HSBC Securities Services; and Sanjay Vatsa, head of Americas at AIM Software.

Baldwin set the scene saying: “A lot of firms are now taking data seriously. There is definitely more awareness and data is at boardroom level.” The growing importance of data management, and data managers, means increasing scrutiny of the cost and value of corporate data. Johnson commented: “Buying market data can be expensive. It’s a necessity, but also a drag on the business, because per se it’s not making money. The challenge is to get as much value as possible internally.”

Baldwin suggested centralising and harmonising data at enterprise level is a way to achieve this. She said: “Centralisation makes it clearer how data is used, where it sits and how it is shared. It is not the only answer, but it helps.” Making centralisation happen, however, is not easy. Different departments have different uses and terms for data. To harmonise this, there needs to be discussion across departments, an overall understanding of business needs and governance and control of the data.

Vatsa questioned whether central harmonisation is the best way to meet data management challenges. He said: “Centralisation is not a silver bullet. You have to look at what you are doing with the data. A business application approach can give you the same benefits as centralisation.”

He characterised this approach as taking a practical, almost ‘assembly line’ view of data production and use, saying: “Focus on what outputs you are interested in for your clients and rationalise data spend. You need to look at data as part of an assembly line. Check data quality and compliance, and make sure people are using it for what it’s supposed to be used for. The data output has to be reliable, consistent, efficient and flexible to handle different client requirements.”

The panel agreed that a practical focus on extracting value from data is key, whether or not centralisation is the ultimate goal. Johnson said data harmonisation and establishing golden sources are an important part of getting value. New regulations and market direction – such as the commoditisation of derivatives – are also supporting the move to centralised data, he added.

Baldwin agreed, concluding: “Good quality control is important, knowing what all the data elements are, having a good data dictionary. Can harmonisation help you build a strong data foundation? Having data quality ensures standardised data, and that can provide a good foundation.”

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: How to maximise the use of data standards and identifiers beyond compliance and in the interests of the business

Date: 18 July 2024 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Data standards and identifiers have become common currency in regulatory compliance, bringing with them improved transparency, efficiency and data quality in reporting. They also contribute to automation. But their value does not end here, with data standards and identifiers...

BLOG

Data Products: Transforming Fraud Detection in Financial Services

By Suki Dhuphar, Head of EMEA, Tamr. Cybercrime assumes many shapes and forms. As a result, it’s often challenging to identify fraudulent behaviour and subsequently address it. Traditional methods frequently fail to detect and combat illicit activities, leading to financial losses and eroded trust. Yet, even today, one of the most prevalent solutions to enhance...

EVENT

TradingTech Briefing New York

Our TradingTech Briefing in New York is aimed at senior-level decision makers in trading technology, electronic execution, trading architecture and offers a day packed with insight from practitioners and from innovative suppliers happy to share their experiences in dealing with the enterprise challenges facing our marketplace.

GUIDE

Regulatory Data Handbook 2023 – Eleventh Edition

Welcome to the eleventh edition of A-Team Group’s Regulatory Data Handbook, a popular publication that covers new regulations in capital markets, tracks regulatory change, and provides advice on the data, data management and implementation requirements of more than 30 regulations across UK, European, US and Asia-Pacific capital markets. This edition of the handbook includes new...