Nearly one on four European financial institutions (FIs) still do not recognise the positive impact of effective data management on profit and loss (P&L) accounts, according to Capco.
The finding is included in Capco’s recent survey into data management practices and perspectives among Europe’s FIs. Entitled ‘Data, Still the Unknown Unknown’, it questions European financial executives on five key aspects of their current data approach: data management, data ownership, data costs, data quality and unstructured data. The key findings include:
- Awareness of data policies is low among FIs.
- Nearly a quarter of respondents don’t understand the impact of data management on a company’s P&L.
- Forty-two percent manage customer data as a regulatory compliance issue without considering its revenue potential.
- Eighty percent have not yet fully explored the use of social media data, nor do they fully understand its value.
“FIs need now to take action. Over the last two years changes in the financial industry have been substantial: spiralling costs, multiple regulations, consumer expectations and the development of new data-rich media add pressure,” said Mark Record, a partner at Capco. “Effective data management can no longer be misunderstood, still less ignored.”
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