CDOs Eye Offensive Approach to Data Management
March 24, 2021
Risk
data aggregation is the top compliance concern for chief data officers (CDOs)
within financial services firms, with 88% of these organizations devoting 40% or
more of their total data practice budget to compliance functions, according to
new research launched ahead of the leading data management event for financial
services, FIMA.
The survey, conducted by WBR Insights among
data and information technology executives within the financial services sector
and sponsored by InterSystems, highlights that financial organizations are
allocating significant portions of their budget to compliance initiatives, and
that 54% of those surveyed further revealed that at least half of these
functions are still performed manually within their organization.

Eighty seven percent of executives say they are implementing strategic data
management initiatives in 2021 to further key business objectives, such as
boosting profitability and improving customer outcomes. Many firms report that
AI-driven analytical cloud services are at the forefront of these initiatives,
with such solutions enabling financial services firms to sift through enormous
volumes of data and gain a single view of accurate, consistent, and trusted
real-time data.
The research also provides CDOs with insight into how their peers are leveraging
new data management technologies and architectures, such as data fabrics,
automated governance, machine learning, data lineage, and blockchain to enable
them to meet their myriad business requirements.
“Financial services organizations are striving to gain a competitive edge,
deliver more value to customers, reduce risk, and respond more quickly to the
needs of the business,” said Ann Kuelzow, global head of financial services at
InterSystems. “This requires leveraging data to its full effect – and the
research shows that there is still more work required on defensive data
management and automating compliance functions, as well as the more strategic
“change the bank” types of initiatives that could have a significant impact on
their operations.”
Other key findings include:
70%
of CDOs say risk data aggregation is the primary regulatory concern within their
IT departments, while 69% say “Know Your Customer” is their primary area of
resource consumption.
69% of CDOs say their organizations have applied data lineage as a data
governance technique, and 52% have applied crowdsourcing techniques.
63% of CDOs are pursuing an analytics-driven business strategy through an
offensive approach to data management.
“Advances in modern data management technology are ensuring our financial
services customers can continue to meet compliance and risk management
initiatives, while also enabling them to implement strategic initiatives that
generate new revenue streams, enhance customer experiences, and improve
operational efficiencies,” added Kuelzow. |