Industry Survey Report: The State of the Reference Data Market
February 08 2012 - 10:00AM
The results of a global industry-wide survey of reference data
professionals today revealed that poor quality of reference data
continues to create major problems for financial institutions. The
survey was jointly conducted by iGATE Patni, the integrated
technology and operations brand providing Business Outcomes-based
solutions, in conjunction with Inside Reference Data magazine.
Among key findings, the 2012-2013 Reference Data Management
Industry Survey revealed:
- Implications of governance, risk, and compliance (GRC)
requirements with two thirds of firms planning to extend /
customize systems in 2012-2013
- Home-grown reference data solutions predominate, putting
institutions at risk for meeting regulatory constraints
- Multiple data silos still exist in 75 percent of firms surveyed
- Risk management is seen as a more important business driver for
improving data quality than cost
- Despite recommended practices of centralizing reference data
operations, 31 percent of the firms surveyed still manage data
locally
- Business drivers and action plans of organizations to overcome
the identified challenges.
The survey had responses from a focused group of 107 reference
data professionals across the globe (U.S., EMEA, and APAC) from
Tier 1, Tier 2 and Tier 3 organization size (based on revenue) and
included a variety of firms from the buy-side, sell-side, and
universal (retail and investment) banks to cover every major
segment of business.
"The industry survey shows that financial services firms
are still facing major issues maintaining quality and consistency
in their reference data management processes," said Fred
Cohen, group vice president and global head of Capital Markets and
Investment Banking Practice, iGATE Patni. "Firms still seem
to be at a lower maturity level of data GRC requirements and most
are pre-occupied at the lower levels trying to improve data quality
and manage silos."
New and changing regulatory requirements have prompted many
financial service companies to re-evaluate their reference data
strategies. To prepare for new regulations, nearly 62 percent of
survey respondents are planning to extend or customize their
reference data systems during 2012 and 2013. An additional 25
percent reported that they will be unable to customize their
systems as they lack the necessary understanding of upcoming
regulations.
The cost of managing and maintaining high data quality also
remained a challenge, as respondents reported that 50 percent of
their total reference data management budget was allocated to
paying for supply and management of external data feeds, therefore
leaving few resources to managing data quality effectively. The
report findings indicate that budgets for vendor data will continue
to grow over the next two years, bringing even more pressure to
bear on teams who are struggling to provide the data that the
business needs to deal with an uncertain regulatory and financial
environment.
The need to improve data quality was the primary business driver
cited, with 73 percent listing it as their top priority, followed
closely by the need to reduce risk (70 percent), a desire for
better operational efficiency (50 percent) and a push for improved
customer satisfaction / retention (42 percent). The survey also
revealed several barriers to implementing a successful reference
data strategy. For example, many respondents cited high data costs
and the challenge of maintaining a single version of data across
the enterprise, especially when dealing with a highly-siloed
system.
Risk management rose in importance since iGATE Patni's last
reference data management survey in 2010, reflecting the impact
that regulatory directives may have on customer operations. The
need for cost savings, system automation and speed of new product
introductions were cited as lower priorities, according to the
respondents.
iGATE Patni helps financial service companies mitigate risks and
rationalize the cost of managing their reference data with the
Reference and Data Rationalization (RADAR) program. The program
enables institutions to understand the volume, expense, source and
flow of reference data within the institution.
About iGATE Patni
'iGATE Patni' is the common brand identity of two organizations
— iGATE Corporation (Nasdaq:IGTE) and Patni Computer
Systems Limited (Patni). With iGATE having acquired a majority
stake in Patni, the two companies, under the common brand iGATE
Patni, jointly provide full-spectrum consulting, technology and
business process outsourcing, and product engineering services on a
Business Outcomes-based model. Armed with over three decades of IT
Services experience and powered by the iTOPS (Integrated Technology
and Operations) platform, iGATE Patni's multi-location global
organization with a talent pool of 26,000+ people, consistently
delivers effective solutions to over 360 Fortune 1000 clients
spanning across verticals like: banking and financial services;
insurance and healthcare; life sciences; manufacturing, retail,
distribution and logistics; media, entertainment leisure and
travel; communication, energy and utilities; public sector; and
independent software vendors. Visit: www.igatepatni.com
iGATE Corporation is listed on NASDAQ (IGTE), and Patni Computer
Systems Limited is listed on the Bombay Stock Exchange (532517),
the National Stock Exchange of India (PATNI) and NYSE (PTI).
The iGATE Patni brand logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5150
CONTACT: Prabhanjan Deshpande "PD"
Corporate Communication and Media Relations
PD@igatepatni.com
+91 80 4104 5006
PAN Communications
Mike O'Connell / Gene Carozza
igatepatni@pancomm.com
617-502-4300
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