Over a third of financial services firms are planning to invest in the automation of reference data over the next two years, according to a survey of IT managers conducted by AIM Software and sponsored by FT Interactive Data.
The survey of 1027 IT managers at financial services firms found that improving reference data quality is regarded as a key issue for risk management and 37% of companies will invest in reference data management systems over the next 24 months.
Commenting on the research, Martin Buchberger, head of marketing at AIM Software, says: "The results show that companies see the close interdependence between high quality reference data management and efficient risk management."
The focus lies on the automation of static data and the processing of corporate actions data - the areas from which the largest costs originate, says AIM. Over a quarter (26%) of respondents plan to increase their levels of automation for corporate actions.
"Companies realise that they could face serious operational risk and huge losses in this area. Corporate actions are one of the least automated and therefore one of the most labour-intensive, error- and risk-prone areas," says Graham Parry, manager of FT Interactive Data's European business development group.
The research found that companies are also focusing on reducing errors and costs associated with back office workflows through improved straight-through processing (STP). Over half of survey respondents cited improved efficiency as an important driving force for implementing a risk management system.