Better data quality and control at asset management and sell-side firms could see new business growth of up to 40% in the next two years, according to new research.
A report produced by Adox Research and commissioned by data integrity specialist Gresham Technologies polled more than 70 senior executives globally across the industry, and found that two-thirds of respondents expect data monetisation to deliver new business growth between 10-40% over the next couple of years.
According to the survey, just under half of the industry has already re-purposed data that has been delivered for compliance and regulatory reporting to upgrade systems, processes and technology, while 40% of respondents also predicted that traditional sell-side institutions will be the single largest beneficiary of increased transparency and open data initiatives.
“The effort required to meet the regulatory burden has been huge, but forward-thinking firms now are actively searching for ways to reuse compliance-led deliverables for strategic business reasons and to identify new opportunities,” said Paul White, CMO at Gresham Technologies. “Better data quality and control gives firms the ability to monetise that data, improving customer services, assessing product viability and analysing market opportunities in an entirely new way.”
Gresham Technologies stated that it has seen similar trends when implementing automated tools and streamlining technology stacks for its clients, which in some cases can produce a 60% reduction in costs and a 20% saving in resources over five years.
“In the past, data integration and the management of legacy systems have been the main obstacles to transformation projects, with the key challenges being disparate systems, across multiple locations, varied data formats and outputs,” White added. “However, we are seeing first-hand how innovative firms are leveraging compliance projects to solve the long-standing problem of data quality and control.”