The leading data architecture challenges for capital markets firms center around data quality and delivering relevant data to the business, according to new research from leading global research and advisory firm Aite Group.
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“Many capital markets firms view data as the foundation of their business. But, as Aite Group’s research shows, lagging data architecture investments have made it difficult for many of these firms to deliver against growing regulatory, business, and client requirements”
The study, amassed via extensive interviews with executives of leading capital markets firms and commissioned by InterSystems, highlights the essential part that effective and efficient data management and data support play within capital markets firms. It provides C-suite executives with insights into the business impacts and the competitive and operational edge that can be gleaned through investment in data management technology.
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Other key findings from the study include:
- Eighty percent of buy-side respondents and all sell-side respondents currently have a problem with operational and technology data silos.
- Most buy-side respondents (60%) view improved reliability as the most important benefit of data architecture investment, whereas the vast majority of sell-side respondents (78%) view faster time to market as the most important benefit of improving their data architecture.
- Sixty percent of buy-side respondents are either actively considering adopting machine learning (ML) to deliver insights for the investment process, or already piloting in this area. All sell-side respondents are either actively considering adopting ML or are piloting this technology in areas such as fraud and financial crime detection and trade analytics.
“Many capital markets firms view data as the foundation of their business. But, as Aite Group’s research shows, lagging data architecture investments have made it difficult for many of these firms to deliver against growing regulatory, business, and client requirements,” said Ann Kuelzow, global head of financial services at InterSystems. “With heightened client demands for cost savings and efficiency, having the ability to collect data and report on demand has never been more critical. The time is now for capital market leaders to invest in their data management and architecture to create the healthy data required to power digital transformation journeys.”
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