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Gurkan Tasoren

Gurkan Tasoren is Bloomberg's Head of Enterprise Solutions in Asia. Bloomberg's Enterprise Solutions deliver a suite of services that enable Asian companies of the future to seamlessly and transparently acquire, organize and manage their technology infrastructure and data management requirements across the organization.

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Data Management has Never Been More Important in Finance

Banks and asset managers today are consuming vast amounts of data for analysis, execution, trade reporting and collateral management.

Earlier this year, Bloomberg held Enterprise Solutions Summits across Asia and uncovered some interesting trends around data consumption and data management in the financial sector. Here are two of the most interesting findings shared to us from market data, risk and compliance executives in financial institutions.

Finding #1: Over 40 percent of respondents in Asia expect new technologies such as web-based, cloud-based and quant tools to be the most significant drivers of change in 2017.

Data consumption is expanding at an accelerating rate as financial institutions increasingly take on more data to conduct analytics, preserve alpha, comply with regulation and demonstrate best execution. As such, data and risk officers are finding new ways to manage vast amounts of data, evolving it from a manual painstaking process to introducing an automated solution that can be fulfilled by new technologies such as web-based, cloud-based or quant tools.

With big data, firms face the challenge of data delivery, processing and storage. To address this, technology providers have gravitated towards cloud-based solutions and away from deployed ones. As such, many companies are moving their data to the cloud because it reduces cost, provides agility and reduces the pain and resources spent to continually upgrade software and maintain hardware.

Similar to cloud-based solutions, the corresponding demand for more flexible front-end data management utility tools has driven greater demand for web-based solutions. This is not to replace deployed solutions but rather acts as a complement. It introduces flexibility in data management use, from a point-and-click supermarket utility to deployment efficiencies via the web.

In the last few years, financial data management has evolved dramatically. Traditionally, it was focused on standard data needs for day-to-day risk management and mark-to-market. The tremendous growth of financial data has meant that firms need to find ways to acquire, distribute and utilize it.

Finding #2: A third of respondents will devote resources to organizing data, whilst another third will focus on distributing data across the enterprise to leverage it as a strategic asset from front to back office.

Banks and asset managers today are consuming vast amounts of data for analysis, execution, trade reporting and collateral management. Regulators want deeper visibility into how trade and investment decisions are made within firms to enhance market integrity and transparency. Compounded by the reality that financial information is generated by disparate sources at an escalating rate, data management solutions in the financial sector are becoming an imperative.

Especially when a firm size gets larger, there is a pertinent need for efficient data organization and distribution across the enterprise. Clients in the financial sector are concerned with data duplication and consistency, especially around data acquisition. This can lead to inconsistent usage where the various departments can be utilizing disparate sets of data, which ultimately leads to misalignment. We see a trend towards maintaining a common set of master data content, where the firm's users can access with confidence. Clients for example, are looking to create master sets of historical data across data points of volatility.

This requirement leads to the second most urgent task - to ensure a robust data management and distribution system across the enterprise. The interest in enterprise data management systems points to an industry's realization that it is no longer sufficient to acquire data. The need to ensure data quality from multiple sources via a cleansing process is important, and leads on to the need to distribute this data for use across the enterprise seamlessly.

Our poll results reinforce the importance of leveraging technology to maintain data integrity. Going forward, the need to acquire, manage and use data more efficiently to drive profitability and mitigate risk will become a larger priority for financial institutions in Asia. Bloomberg's role as technology partners is to deliver enterprise solutions that will simplify complex workflows so that our clients can focus on making smarter and better decisions in a swift manner, whilst remaining compliant at all times.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house


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