FREMONT, Calif. and BANGALORE, India, Feb. 8, 2012 (GLOBE NEWSWIRE) -- 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:
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Implications of governance, risk, and compliance (GRC) requirements with two thirds of firms planning to extend / customize systems in 2012-2013
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Home-grown reference data solutions predominate, putting institutions at risk for meeting regulatory constraints
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Multiple data silos still exist in 75 percent of firms surveyed
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Risk management is seen as a more important business driver for improving data quality than cost
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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).
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