Financial institutions are often responsible for maintaining large volumes of highly sensitive information. Unfortunately, many companies are still using manual processes to accommodate their analytic requirements, introducing a number of data quality
This was highlighted in a recent study by Broadridge Financial Solutions, which found that 65 percent of mutual fund distributors, including large brokerages, banks and retirement plan providers, are analyzing data by using error-prone processes like spreadsheets. Not only does this jeopardize the confidentiality of mission-critical information, but the majority of respondents said it is also increasing expenses and inhibiting operations.
"In today's environment of slower growth, increased competition and stringent regulatory scrutiny requiring more information disclosure, firms distributing mutual funds must look for new innovative avenues to leverage their data for more accurate invoicing, revenue forecasting, and sales and compliance reporting, all while managing costs," said Thomas Quercia of Broadridge.
The study also revealed that nearly three-quarters of respondents expressed the desire to change these procedures to improve data management.
A separate report by CIO Insight said executives need to keep data quality concerns in mind when analyzing sensitive information, as inaccurate records could have long-term consequences. By using automated solutions, firms may be able to minimize risk.