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

A-Team Insight Blogs

Majority of RDR Readers Facing Decreased Data Management Budgets for This Year

The majority of Reference Data Review readers will have to do more with less this year in terms of budget for their data management projects, according to the results of our latest reader poll. The respondents to our January poll indicate that 62% of readers are facing cuts to their budgets for 2009.

The financial crisis has put pressure on financial institutions to deal with critical areas such as compliance and risk management requirements and this may be diverting their budgets from longer term enterprise data management (EDM) projects. Respondents indicated that their budgets for 2009 had decreased significantly, at 31%, or only slightly, also at 31%.

Despite discussions to the contrary at last year’s FIMA conference in London in November, very few institutions’ budgets have remained the same as those granted in 2008, with only 8% of readers indicating they have the same levels of funding.

A surprising 8% of readers have experienced a significant increase in funding, with a further 23% having witnessed a slight increase in data management budget. Perhaps, as indicated by A-Team Group’s recent research into risk management’s impact on data management in collaboration with GoldenSource, the risk function is having a beneficial impact on data management in the case of certain institutions.

The report, “Risk Management Drives Cross-enterprise Data Connections”, highlights the fact that financial institutions are focusing on improving data management practices to support risk management requirements. According to 89% of the respondents to the survey, chief risk officers are focusing on data practices as a way to keep risk in check.

What is certain from these results is that it’s going to be a tough year for the vendor community. With little business about due to spending restrictions, data management vendors are going to have to go that extra mile to get a piece of the action.

The ASP model seems to be a significant area of focus for those in the data management game, as institutions look to outsource their problem areas to vendors and reduce in-house costs. It is likely that these solutions, along with software as a service (SaaS), will be touted for some time to come.

Our next poll is aimed at finding out what is driving firms to invest in the area of data management – is it the threat of reputational damage? Regulatory and compliance requirements? The need to consolidate after mergers and acquisitions (of which there have been many over the last six months)? Operational risk? A case of cost saving measures? Or some other pressure?

Get your voice heard and get involved (see the right hand column and tell us your thoughts).

Related content

WEBINAR

Recorded Webinar: The challenges of managing data for regulatory compliance and business performance

Don’t miss this opportunity to view the recording of this recently held webinar. Regulatory compliance is non-negotiable and business performance based on a solid understanding of data is no longer a ‘nice to have’ but critical to success. The webinar will consider the challenges of sourcing and managing data for both compliance and performance, identify...

BLOG

VoxSmart Raises $25 Million with Toscafund to Finance Expansion and Growth

In a deal claimed to be one of the largest fundraises conducted for the RegTech and Compliance sector, London-based communications surveillance provider VoxSmart has raised $25 million to strengthen its markets surveillance technology suite and to fund further expansion, particularly in North America and emerging markets. Following $13.7 million raised in earlier rounds of Series...

EVENT

ESG Data & Tech Summit 2022

This summit 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

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...