Asset and wealth management firms need to employ a successful data governance strategy based on tangible metrics and data improvement goals that are assessed regularly, according to a new report from Aite Group.
Asset and wealth management firms may be faced with a state of separation in their data management environments overall, but only 46% have already started data governance programs to wed some of these data sets together, and a further 23% are considering launching such programs, the report says.
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The report, Wedding Divorced Data Sets: Data Maturity and Governance for Institutional and Retail Asset Managers, Corporate actions, says that market data, and legal entity data exhibit the widest range of perceived maturity in terms of data management among both asset and wealth managers, from "least mature" to "most mature."
Legal entity data is perceived to be the biggest problem area — 15% of firms rank it as the "least mature" data set, the report found.
Virginie O’Shea, senior analyst in Institutional Securities & Investments at Aite Group, said: "An assessment of data maturity should consider the quality of each of the individual data sets, including whether the data is fit for internal and external use and whether the firm can extract and combine those data sets across the enterprise.
"The data management team’s timely ability to respond to business end-user requirements, external reporting requirements, and less latency in the onboarding of new products and clients is also important and can relate directly to reduced maintenance costs."
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