DTCC outlines predictions for future data landscape
18 January 2023 US
Image: KanawatTH/stock.adobe.com
“Open source” data standards will be an industry standard in the coming decade, according to a recent DTCC whitepaper.
The paper, entitled ‘Data Strategy & Management in Financial Markets’, outlines four predictions for the future of the data landscape in financial markets over the next 10 years. It also provides advice on what needs to be prioritised to facilitate and support changes to data operating models.
Alongside the increased access to open source data, data insights will also be more efficient and focused, the report says. Increased automation will reduce the amount of time needed to complete routine management tasks and to bring products to market, allowing more specific data analysis to be carried out.
Overall, data will be both easily accessible and more secure, DTCC claims. Improvements around governance, privacy and security will be a particular area of focus for the industry in order to keep data users safe.
By removing data from legacy systems, market participants will be able to pool data into interconnected ecosystems. This will mitigate the risk of data duplication and allow for more efficient cross-market insights, DTCC says.
In order to reach these capabilities, firms must work on data governance, find ways to collaborate with one another to improve innovation and interoperability, and ensure that they have strong foundational management practices in place.
Kapil Bansal, head of business architecture, data strategy and analytics at DTCC, says: “The financial services industry has an opportunity to reimagine how data is exchanged and managed across financial markets and firms.
“For many years, companies have collected massive stores of data, but the siloed nature of data and the need for better data quality limited the ability of market participants to extract strategic insights to support more effective decision-making. We’re now at a unique moment where we can make this vision a reality, but long-term success hinges on market participants taking action to ensure their data strategy can meet the demands of a highly digitalised and interconnected marketplace.”
The paper, entitled ‘Data Strategy & Management in Financial Markets’, outlines four predictions for the future of the data landscape in financial markets over the next 10 years. It also provides advice on what needs to be prioritised to facilitate and support changes to data operating models.
Alongside the increased access to open source data, data insights will also be more efficient and focused, the report says. Increased automation will reduce the amount of time needed to complete routine management tasks and to bring products to market, allowing more specific data analysis to be carried out.
Overall, data will be both easily accessible and more secure, DTCC claims. Improvements around governance, privacy and security will be a particular area of focus for the industry in order to keep data users safe.
By removing data from legacy systems, market participants will be able to pool data into interconnected ecosystems. This will mitigate the risk of data duplication and allow for more efficient cross-market insights, DTCC says.
In order to reach these capabilities, firms must work on data governance, find ways to collaborate with one another to improve innovation and interoperability, and ensure that they have strong foundational management practices in place.
Kapil Bansal, head of business architecture, data strategy and analytics at DTCC, says: “The financial services industry has an opportunity to reimagine how data is exchanged and managed across financial markets and firms.
“For many years, companies have collected massive stores of data, but the siloed nature of data and the need for better data quality limited the ability of market participants to extract strategic insights to support more effective decision-making. We’re now at a unique moment where we can make this vision a reality, but long-term success hinges on market participants taking action to ensure their data strategy can meet the demands of a highly digitalised and interconnected marketplace.”
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