Most large UK
financial institutions view data as essential to the business,
but many are failing to manage data well, a survey has
revealed.
Although 86% of organisations surveyed said data quality was
important and 89% said data was a strategic asset, only 11% said
they were implementing some form of data governance.
Although 18% were considering a
data governance project, 27% were not, according to the BDRC
survey of 44 financial institutions commissioned by data quality
and integration firm
DataFlux.
Smaller organisations with fewer than 1,000 employees are less
likely to consider data governance projects, making up 38% of those
not considering it.
"This is shocking if we take data governance to mean visibility
and control over where data resides, understanding its business
value and who has access to it," said Colin Rickard managing
director at DataFlux.
The survey revealed that responsibility for data quality or
governance tends to be scattered, with six in 10 respondents saying
data quality is managed across multiple business units.
In more than a third (36%) of financial institutions surveyed,
the IT department assumes responsibility for data and 16% admitted
that noone had specific responsibility.
This will have to change to comply with current and expected
regulations, said Rickard.
"Financial services legislation demands robust processes for
guaranteeing the accuracy of data held on assets and customers," he
said.
According to Rickard, IT departments should be responsible only
for the storage, access, backup and recovery of data.
"Data content, accuracy, consistency and the business value of
the data should be the responsibility of risk and compliance
managers, because data governance is primarily a business issue,"
he said.
More than 90% of respondents said an increase in compliance
regulation is likely in the next years and that it will focus on
security, accuracy and quality of data.
Respondents said they expect new regulations to be aimed at
preventing ID theft, data leakage, money laundering and scams.
They also expect an increase in the power of regulators and a
strengthening of enforcement through increased audits, reviews and
raids.
Data integration and effective management to meet regulatory
requirements were identified as key challenges in the next 12
months for financial services providers.