This study has revealed that improving data quality is regarded as a key issue for risk management – and that regulatory requirements including Basel II and Sarbanes-Oxley are driving substantial inve
November 3, 2004 (Press Release) --
Financial industry regards data quality as a key issue for risk management
A study of 1,700+ banks from 63 countries, conducted by AIM Software, the Vienna University of Economics and sponsored by Reuters, has revealed that improving data quality is regarded as a key issue for risk management – and that regulatory requirements including Basel II and Sarbanes-Oxley are driving substantial investments in IT.
The survey quizzed banks about eleven key topics involving reference data management and risk management and shows that financial institutions worldwide are making considerable efforts to deepen their data management and increase data quality.
These efforts are being driven, besides cost pressures and increased transaction volumes, by regulatory requirements such as Sarbanes-Oxley and Basel II, which will be implemented in more than 100 countries within the next years. “The results show that companies realize the close connection between a comprehensive data management and an efficient risk management,” explains Martin Buchberger, Head of Marketing at AIM Software.
“The new survey is the first to take a truly global perspective. Former surveys were usually based on the US and Western Europe, yet now for the first time regions like CEE, Central and South America, Australia, Asia and the Middle-East are covered”, states professor Klaus Arnold from the Vienna University of Economics.
“The effort that financial institutions are making to improve their data management is noticeable,” Buchberger continues. The areas where most banks reported plans to substantially improve data quality within the next two years were the Middle-East (79%), CEE (84%), Asia (88%) and Central & South America (92%).
The focus of banks' efforts lies in the automation of reference data and corporate actions processing, the areas from which the largest costs originate. In fact, one out of ten institutions still employ more than 50 people for reference data management. “The survey enables companies to get a comprehensive overview of the status quo in their industry. Banks can deduce where they have to catch up with their regional benchmark and how trends like ISO 20022, STP and Reconciliation are evolving,” concludes Buchberger.
The full results of the survey are available at http://www.dmstudy.info/access?view=3531
About AIM Software
Founded in 1998, AIM Software (www.aim-sw.com) specializes in data and risk management solutions for financial institutions. With offices in Austria, New York, Switzerland and Hong Kong, AIM Software operates globally, servicing 70+ clients in the major financial centers, making it a global leader in reference data management.
About Reuters
Reuters (www.reuters.com), the world’s largest international news agency with 2,300 editorial staff in 197 bureaus in 92 countries, bases its reputation on speed, accuracy and independence. In 2003, the Reuters Group had revenues of Ł3.2 billion.
About the Vienna University of Economics
The Vienna University of Economics (www.wu-wien.ac.at) with about 20,000 students was founded in 1898 and offers a broad range of disciplines. The Department for Applied Regional and Economic Geography focuses its research on regional developments.
A study of 1,700+ banks from 63 countries, conducted by AIM Software, the Vienna University of Economics and sponsored by Reuters, has revealed that improving data quality is regarded as a key issue for risk management – and that regulatory requirements including Basel II and Sarbanes-Oxley are driving substantial investments in IT.
The survey quizzed banks about eleven key topics involving reference data management and risk management and shows that financial institutions worldwide are making considerable efforts to deepen their data management and increase data quality.
These efforts are being driven, besides cost pressures and increased transaction volumes, by regulatory requirements such as Sarbanes-Oxley and Basel II, which will be implemented in more than 100 countries within the next years. “The results show that companies realize the close connection between a comprehensive data management and an efficient risk management,” explains Martin Buchberger, Head of Marketing at AIM Software.
“The new survey is the first to take a truly global perspective. Former surveys were usually based on the US and Western Europe, yet now for the first time regions like CEE, Central and South America, Australia, Asia and the Middle-East are covered”, states professor Klaus Arnold from the Vienna University of Economics.
“The effort that financial institutions are making to improve their data management is noticeable,” Buchberger continues. The areas where most banks reported plans to substantially improve data quality within the next two years were the Middle-East (79%), CEE (84%), Asia (88%) and Central & South America (92%).
The focus of banks' efforts lies in the automation of reference data and corporate actions processing, the areas from which the largest costs originate. In fact, one out of ten institutions still employ more than 50 people for reference data management. “The survey enables companies to get a comprehensive overview of the status quo in their industry. Banks can deduce where they have to catch up with their regional benchmark and how trends like ISO 20022, STP and Reconciliation are evolving,” concludes Buchberger.
The full results of the survey are available at http://www.dmstudy.info/access?view=3531
About AIM Software
Founded in 1998, AIM Software (www.aim-sw.com) specializes in data and risk management solutions for financial institutions. With offices in Austria, New York, Switzerland and Hong Kong, AIM Software operates globally, servicing 70+ clients in the major financial centers, making it a global leader in reference data management.
About Reuters
Reuters (www.reuters.com), the world’s largest international news agency with 2,300 editorial staff in 197 bureaus in 92 countries, bases its reputation on speed, accuracy and independence. In 2003, the Reuters Group had revenues of Ł3.2 billion.
About the Vienna University of Economics
The Vienna University of Economics (www.wu-wien.ac.at) with about 20,000 students was founded in 1898 and offers a broad range of disciplines. The Department for Applied Regional and Economic Geography focuses its research on regional developments.
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