Report Finds Over 40 Percent Still Using Excel to Manage Mission Critical Compliance Projects
Redwood City, CA, October 10, 2017 – A new study commissioned by Financial Information Management (FIMA) and Paxata, the pioneer and leader in empowering all business consumers to intelligently transform raw data into ready information instantaneously, found that driving revenue and business growth, cost reduction, and compliance reporting remain the top three initiatives pursued by financial data management and governance executives.
In addition to addressing regulatory compliance while supporting business growth, financial organizations are focusing on three key issues:
People and Process. The financial services industry remains encumbered by compliance-related issues, as business consumers are still deeply reliant on the IT department or antiquated tools to address compliance needs:
- 77 percent devote more than a quarter of their analytics activities to compliance needs.
- 65 percent require 35+ IT and business employees to satisfactorily address their organization’s regulatory reporting.
- 50 percent rely heavily on their IT departments to prepare data for these projects.
Risk and Limitations. Compliance reporting is a time-sensitive process, as it is vitally important for financial institutions (FIs) to meet its deadlines. However, many are concerned with current information management practices:
- 78 percent have issues meeting reporting deadlines with the clear majority saying current practices are not fast enough.
- 33 percent felt compliance initiatives are slower than expected and most if not all projects fail because data LOBs receive from IT departments are too late. And, only 5 percent are fully confident in the results.
- 43 percent say that data quality and governance are significant challenges for them. A mere 2 percent are “thrilled” with the quality of the data output they receive while 12 percent rate the quality of their data as “very good.”
Disrupted Technologies. Compliance and reporting make up a huge portion of the over-all IT budget; yet, confidence among users remains low. FIs are taking action because:
- 67 percent of firms allocate a substantial portion (up to 11 percent) of their total IT budget towards compliance and regulatory reporting and analytics.
- 9 percent are “very confident” that they have the proper technology in place to handle the tremendous data volumes common to the financial services industry.
- 82 percent of FIs have self-service analytics in their organizations: 39 percent as their corporate standard or in large pockets of the company, and 43 percent in a medium capacity. The majority (68 percent) are moving their data projects to the cloud, and 82 percent are considering hybrid-cloud or multi-cloud integrations within the next year.
When it comes to technology budgets, most said they have been able to progressively reduce the share of resources needed to manage compliance reporting and analytics. This has allowed them to make more investments in innovative technologies that support better data governance, automated lineage, Big Data analytics, machine learning and AI integration, and a host of other ambitious initiatives.
“Solutions that enable business consumers to combine and manipulate data to create their own information they can trust is extremely important,” said Nenshad Bardoliwalla, Co-Founder and Chief Product Officer at Paxata. “The future lies with empowering individuals with robust self-service information management solutions, and we believe the survey findings demonstrate that organizations are eager to use these tools to achieve greater confidence in their business insights and compliance reporting in their quest to become Information Inspired.”
About the Study
The study was conducted by WBR Digital in May 2017. The results analyzed in this report were gathered from responses to an on-site benchmarking survey delivered at FIMA US. Ninety-seven executives responded to the survey along with conducting confidential interviews with sources after survey data was compiled.
About Financial Information Management (FIMA)
Financial Information Management is the leading reference data management event in the United States. Each of their events will host more than 300 guests from over 124 companies with three days content and 12+ hours of networking. Each year FIMA hosted sessions and discussions lead by top reference data management professionals, all covering topics that are of fundamental importance to your enterprise-wide data management initiatives. For more information visit, WB Research.
Companies around the globe rely on Paxata to get smart about information. Paxata is the pioneer that intelligently empowers all business consumers to transform raw data into ready information, instantly and automatically, with an enterprise-grade, self-service data preparation application and machine learning platform. Our Adaptive Information Platform weaves data into an information fabric from any source and any cloud to create trusted insights. Business consumers use clicks, not code to achieve results in minutes, not months. With Paxata, Be an Information Inspired Business.
Paxata was founded in 2012 and headquartered in Redwood City, California with offices in New York, Ohio, and Singapore. Visit www.paxata.com or engage with us on Twitter, LinkedIn, Facebook, or YouTube.