The financial industry has long struggled to manage data efficiently, especially security and reference data. These datasets are critical to success, so buy-side firms need to be able to trust the quality and accuracy of the data used to inform investment decisions. Unfortunately, this is much more difficult than it sounds because of the sheer volume of data, outdated systems and processes, and a lack of centralized repositories.
To better understand how these challenges affect buy-side firms, IVP conducted a survey about security and reference data. The results are instructive:
- 33% of firms say they are at the stage of “data chaos and isolated data projects”
- 42% have “governed self-service access with data insights”
- Only 25% of firms have reached the “secure and reliable data repository” stage
These findings highlight the need for buy-side firms to take a more proactive approach to managing financial data. The majority of firms surveyed (86%) consider it very critical to have a consolidated golden copy of security and entity data. This is not surprising, given the impact these vital datasets can have on investment decisions. But the need is simply not being met.
The lack of efficient systems and processes is also apparent in the respondents agreeing that their firms take more than a day to start maintaining a new data point in the security data model. This time lag is unacceptable in a fast-paced industry where quick action is required to capitalize on market opportunities.
So, what is the solution to these challenges? For many buy-side firms, the answer is a comprehensive security and reference data mastering solution that can easily integrate with a variety of upstream and downstream systems.
A security master provides a centralized repository for accurate and up-to-date information, allowing buy-side firms to better manage financial data and improve operational efficiency. With a security master in place, firms can quickly and easily access the data they need without having to sift through disparate sources or worry about data quality. This is especially important for large firms that deal with very high volumes of securities and legal entities.
Another important aspect of a security master is the approval mechanisms for onboarding or updating legal entity data. The vast majority (72%) of firms surveyed use email for these approvals and only 14% have a workflow tool in place. From these results alone, it’s clear that many buy-side firms are not equipped to manage changes to large data volumes effectively. A security master offers a more streamlined approach, allowing firms to quickly approve updates and ensure the quality of their data.
By addressing many of the data-related challenges asset management firms face, a security master can drive more informed investment decisions and enhance client service. Whether the organization is a large institutional investor or a small asset manager, implementing a security master will provide you with the accurate data you need to stay ahead of the competition.
IVP experts covered many of these topics in depth during a recent webinar called “Mastering Security and Reference Datasets Across Your Ecosystem.” The full webinar is available to watch on demand.
To push your organization further on the data maturity curve, make sure to join us for two upcoming webinars on master data management solutions for buy-side firms. Register now!
You can also learn more about the IVP Security and Reference Master (SRM) and how it can help your firm regain control of critical datasets. Please contact email@example.com to schedule a live or remote demo.
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Security & Reference Master
A reference data management solution with a highly configurable core and intuitive data modeling that combine to create an accurate reference master more efficiently.
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