The provider's recent study of head technologists at 42 asset management firms, custodians, and other asset holders reveals that data governance has become obligatory, if not yet well-developed.
Regulation was cited by 86 percent of respondents as having a medium- or high-cost impact on their data operations, and nearly two-thirds (62 percent) admitted they were unprepared or unsure if they could address new transparency and reporting demands. Around the same number, 63 percent, say they have a team dedicated to managing data and benchmarks, but most say their broader strategy is a work in progress: only 11 percent claim to have achieved organizational maturity on that issue.
Along with regulatory requirements, 29 percent of firms also noted that moving to more complex instruments and products has proven a driver for data-related investment.
“Between pending regulation and the increasing complexity and volume of data that asset managers face, firms must work to achieve maturity in data governance. While the cost of doing so, for firms of all sizes, is significant at the outset, having proper data governance should now be the norm. The costs of inaction are much greater as complexity clogs business machinery, and regulations threaten sanctions," says Alessandro Ferrari, a senior vice president at Rimes.
Waters Wavelength Podcast Episode 97: C-Level Execs Talk Bitcoin, Fintechs, Cognitive Computing & Open-Source Tech
In separate interviews, executives from AQR, JPMorgan, Cboe and IBM discuss topics permeating the capital markets.Subscribe to Weekly Wrap emails
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