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

A-Team Insight Blogs

Only Half of RDR Readers Have Formal Metrics in Place to Measure Data Successes

Despite the downturn in the financial markets and cost pressures on data management budgets, half of Reference Data Review readers still do not have formal metrics in place to prove the success of a project, according to the results of our recent reader poll.

The poll results indicate that half of respondents continue to use anecdotal evidence to measure the success of a data management project. This is in spite of the fact that senior management is more rigorously scrutinising the return on investment a firm receives from these projects. After all, every penny counts, as belts are tightened and project deployment becomes more tactical.

It is encouraging that no respondents indicated that they do not measure the impact of such projects, but it is clear that the industry may be in need of more benchmarking tools and best practices around proving ROI in a tangible manner.

Some firms are obviously ahead of the curve and have set these formal metrics in place already and this is something that many vendors have noted when speaking to Reference Data Review over recent months. For example, Rick Enfield, product business owner of the Asset Control’s AC Plus solution, explained last month that it has become an integral part of the vendor’s sales pitch to help provide metrics against which to measure ROI. The challenge is to demonstrate specifically where implementations will save money by reducing duplication in terms of effective relationships or operational risk features, he said.

Even regulatory bodies are aware of the need for metrics in the data management space. Earlier this year, Francis Gross, head of the external statistics division at the European Central Bank (ECB), suggested that regulators should become the “catalysts” for change in the market by setting metrics and standards for data management. It is also under this assumption that the ECB is seeking to launch a reference data utility.

The easiest metrics to measure with regards to success are seemingly around the impact of streamlining the supply chain for data, the reduction of duplicative or redundant data and a reduction in direct costs from errors. Compliance and risk management concerns also play a part in this by providing yet more tangible metrics (outside of pure cost) against which these projects can be assessed.

This, however, requires close work between data managers and downstream users of this data in order to keep track of the benefits to the financial institution as a whole. This is not an easy proposition in an environment where headcounts are down and data volumes are up.

Related content

WEBINAR

Recorded Webinar: Adverse media screening – how to cut exposure to criminal activity, from money laundering to human trafficking

Screening for adverse media coverage of counterparties presents an incredible opportunity for financial institutions to limit risk exposures and identify bad actors early. It is required by regulations such as the EU’s sixth Anti-Money Laundering Directive (AML 6), and is one of the most effective ways to steer clear of potential connections with sanctioned activity...

BLOG

Martin Currie Investment Management Implements CuriumEDM for ESG Data Processes

Martin Currie Investment Management has completed the first phase of implementing Curium Data Systems’ CuriumEDM, which includes a focus on gathering, mastering and quality control of Environmental, Social and Governance (ESG) data sets. The investment manager has offered sustainable long-term investing for some years, with ESG analysis embedded in its investment process. CuriumEDM provides data...

EVENT

Data Management Summit USA Virtual (Redirected)

The highly successful Data Management Summit USA Virtual was held in September 2020 and explored how sell side and buy side financial institutions are navigating the global crisis and adapting their data strategies to manage in today’s new normal environment.

GUIDE

Regulatory Data Handbook 2021/2022 – Ninth Edition

Welcome to the ninth edition of A-Team Group’s Regulatory Data Handbook, a publication dedicated to helping you gain a full understanding of regulations related to your organisation from the details of requirements to best practice implementation. This edition of the handbook includes a focus on regulations being rolled out to bring order and standardisation to...