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

A-Team Insight Blogs

IT Complexity, Budget, ROI Key Challenges for EDM Projects

Share article

Confirmation that understanding of the importance of enterprise data management is growing among C-level executives comes this month in a new report commissioned by GoldenSource. According to the report, based on 17 interviews with CTOs and CIOs within financial services firms in North America and Europe, 47 per cent of respondents say their firms have in place an enterprise data strategy supported by senior management.

Risk management and “business enablement” are the key drivers for investment in EDM, the survey finds, eclipsing the old operational efficiency/cost reduction argument – and this despite the fact that a significant 27 per cent of respondents believe the problem of trade failures has worsened, due mainly to increasing volumes of complex instruments like credit derivatives.

IT complexity came top of the list of “challenges in achieving EDM”, followed by “finding the right budget” and “lack of concrete ROI”. Of the latter the report states, “Those that found it a significant problem said it was difficult to get long-term projects, such as data management initiatives, pushed forward when there was a competing and constantly growing list of short-term priorities.”

Tim Lind, senior vice president, product strategy at GoldenSource, says “one of the ongoing frustrations” is the intransigence of some firms in terms of investment in data management. “Financial services is essentially a data management profession, therefore it is remarkable that firms question the need to implement an appropriate structure to support data, and continue to insist on needing a proven ROI,” he says. “You will never know with precision how much a dollar invested in infrastructure will yield in terms of payback; people are chasing something which doesn’t exist – a rock solid business case based on metrics.”
Ironically, firms don’t seem to have the same trouble finding budget for business applications and additional data sources: these areas came out as top priorities for planned expenditure in the survey. “But the more applications you throw into the mix, the greater the complexity becomes. The return on investments in new applications and data sources cannot be achieved fully unless firms also invest in the necessary infrastructure to manage those applications and sources,” Lind warns.

Related content

WEBINAR

Recorded Webinar: Data lineage to drive compliance and as a business imperative

The importance of data lineage has escalated in recent years in response to regulatory demand and increased business understanding of the benefits it can deliver. Like all capital markets technology, data lineage presents both challenges and opportunities, so how best can it be implemented and sustained? And how can your organisation reap the rewards of...

BLOG

FeedStock Joins Red Hat Container Ecosystem

AI-driven data analytics platform Feedstock has completed Red Hat Container certification for its FeedStock Connector and has been published in the Red Hat Ecosystem Catalog. The certification enables FeedStock to use Red Hat’s container registry and deploy Red Hat certified containers in FeedStock’s client environments, enabling frictionless deployment at scale of its automated data management solutions....

EVENT

Data Management Summit London

Now in its 11th year, the Data Management Summit (DMS) in London, will explore how financial institutions are adapting their data strategies to capitalise and support revenue generating activities and operational efficiency in today's digital and cloud based environment. Join us to hear from leading data practitioners and innovators who will share insights into how they are pushing the boundaries with data and delivering value through data and analytics.

GUIDE

Entity Data Management Handbook – Third Edition

Welcome to the third edition of the Entity Data Management Handbook which is available for free download. In this updated edition we delve into the role entity data plays in the smooth running of financial institutions and capital markets, the challenges of attaining high quality data, and various aspects, approaches and technologies involved in managing...