Fear of data readiness may be constraining how fast and confidently institutions feel they are able to move with their digital transformations
Despite universal advanced or expert data management expertise in large U.S. financial institutions, more than a third (thirty-five percent) that are pursuing digital transformations with less-than-anticipated impact are not expecting results for three to five years. Further, nearly half of survey respondents say they can’t keep up with competitors nor service customers in an optimal way, according to a new survey from Tamr, the data mastering company, on the state of data and digital transformation.
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Tamr conducted the survey of 300 C-suite executives in United States financial institutions with revenue of $1 billion or greater.
Sixty-nine percent of those surveyed agreed that data is very important to digital transformation efforts. Further, fifty-eight percent of those engaged in a digital transformation initiative believe leveraging data is vital to the future success of the business. Yet, further questions from the survey reveal unresolved challenges with data and its readiness. This is surprising given the importance of digital transformation to financial organizations and level of investment in it over the past fifteen years.
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Key findings from the survey include:
Desire and willingness to invest in digital transformation is near universal
- Only one percent of those surveyed are not pursuing digital transformation.
- The main drivers of digital transformation are keeping up with/staying ahead of competitors (cited by forty-seven percent) and moving faster than competitors (cited by forty-five percent).
Data and data management are drags on digital transformation
- Sixty-three percent of those that report that their data is insufficiently supporting their efforts say it’s because their data is too vast to analyze.
- In fact, twenty-eight percent identify unreliable data as a motivator for digital transformation, with sixteen percent describing their data as disorganized (nine percent) or unusable (seven percent). This despite the fact that ninety-three percent of respondents report having either advanced or expert data management expertise.
There are notable impediments to managing data
- Nearly a quarter of respondents are dissatisfied with their methods for managing data velocity, volume and variety.
- Common obstacles include: Data volume (fifty-one percent), data management methods unaligned with digital transformation initiatives (forty-four percent), outdated data management metho
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