ABCDS WITH
DATA
Crunching thenumbers Financial institutions are looking to cut costs just as, in many cases, the cost burden for increased regulatory reporting rises. How can the SmartStream approach to data management help? “It is often said that banks are only as good as the quality of their data.” This telling quote from a 2017 report on how banks can prepare to profit from change in European financial markets, sums up the critical role of data management and the need for better data insights to meet regulation as well as gain competitive advantage. But banks can’t do it on their own. As that report went on to make clear, banks and financial institutions must collaborate with technology specialists if they want to make the most of data and turn revolution into revenue. There is no doubt that European markets are being transformed by a combination of forces that necessitate new partnerships and business models. In the face of challenges such as the second Markets in Financial Instruments Directive (MiFID II) and the risk limitations imposed by Basel II and III, there is an urgent requirement for greater transparency and detailed data on
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counterparties, financial instruments and transactions across all asset classes. And let’s not forget the unresolved issue of Brexit, or the continuous impact of economic and political events beyond Europe. All are important change factors that demand greater insight into the information financial institutions have in front of them. More than 10 years on from the financial crisis, banks are still feeling their way back to prosperity and are ever-mindful of their reputations and the need for rigorous controls and oversight. Having reliable and comprehensive data today is a must, and there is a huge challenge – not to mention cost – for them in building reporting systems and managing and storing data. As Nadeem Shamim, cash and liquidity management strategic advisor at SmartStream, puts it: “If you don’t have the ability to gather data efficiently, then you don’t have the ability to respond to requirements effectively, either.”
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