A recent benchmark study by the Enterprise Data Management Council — a non-profit dedicated to elevating data management in the financial industry — found that there has been significant improvement over the past two years in data governance across financial instructions. However, among the 150 financial institutions surveyed, many still face issues with data quality.
Data management can be defined as a process of gathering, validating, storing and processing data. In the context of the financial industry, such data may include information collected from operational systems related to customer touch points such as ATMs, call centers or credit cards. Data may also include financial forecasts gathered from news sources, trading data, etc.
The 2017 Benchmark Data Management Survey is based on EDM Council’s Data Management Capability Model. This model is considered one of industry’s standards for evaluating data management capability as well as implementing and governing data management programs.
According to the report, “70 percent of the industry… now [has] a Chief Data Officer,” indicating a growing data management culture. Beyond the CDO position, many institutions are appointing various data owners with specific responsibility for data management. There are also positive shifts in organizational collaboration, with more than 40 percent of institutions reporting “strong and growing collaboration across IT, operations, control functions and lines of business as they gear up for data management integration.”
On the other hand, many institutions reported “manual reconciliation of data and mapping from physical repositories to applications and reports.” This lack of automation results in reduced confidence in data quality.
So what do these findings mean for Lerner College students earning a master of science in finance?
Increases in data management roles across the financial industry signal a growing demand for trained data management and analytics experts. At the same time, issues with data quality confirm there are many unmet needs that present opportunities for new or recent graduates.
Trained financial services analytics experts will be at the forefront of solving some of financial industry’s toughest challenges, from increasing regulations and merger/acquisition consolidations to customer centricity and risk management.
At the Lerner College Institute for Financial Services Analytics, students focus on the collection and analysis of large datasets with the goal of improving business operations, customer service and risk management. The interdisciplinary nature of this field demands an interdisciplinary approach to learning. That’s why at Lerner, students collaborate with faculty from multiple disciplines including business, engineering and computer science.