13 March 2014
Regulatory Compliance Driving Data Management for Some Companies
Following recent commentary by DataArt’s Alexey Utkin (London) and Oleg Komissarov (New York) for FierceFinanceIT, ITBusinessAge assesses the challenges faced by buy-side companies when it comes to data aggregation and compliance reporting.
“You would think Big Data would be important to any financial services firm, but it turns out, data integration and management are more pressing problems, particularly for buy-side companies, according to a recent FierceFinanceIT article.
The article quotes executives from DataArt, which builds custom software solutions for financial services and other industries. DataArt executives say only a few buy-side companies are dabbling in Big Data as a way to learn more from social media data. Instead, the real focus for asset managers and midsize firms is preparing data for compliance reports.
Recent regulations such as Basel 3 and the U.S. Foreign Account Tax Compliance Act require that companies back up their compliance reports with “auditable data management processes,” the article notes. That’s an issue for many companies, who have traditionally gathered data manually — that’s right, gathered the data manually. In other words, we’re not even talking about companies that used custom integration — but instead used manual integration.
“The biggest challenge is not the reporting itself,” Oleg Komissarov, senior vice president with DataArt, told FierceFinanceIT. “The bigger challenge is the data gathering and aggregation.”