By Douglas Greenwell, Chief Strategy Officer,Duco
The way a business manages its growing volumes of data can make the difference between clear insights that aid business growth, and slow reporting processes that cost time, money and fall short of regulatory standards.
The accelerated momentum for improving data quality in financial services has been driven by growth in digital services all of which rely on high quality data combined with the pandemic shedding light on the issue of data integrity and data reconciliation.
Laws and regulations such as BCBS 239, Sarbanes-Oxley, Basel III, SFTR, IFRS17, GAAP and the new US depository regulations are also making compliance increasingly complex, requiring organisations to guarantee that appropriate systems and procedures are in place to effectively manage and control operational risk.
Despite the mission-critical reliance on good quality data, many financial services firms are still using outdated legacy systemsand manual processes to managetheir reconciliations. These systems are unable to handle complex and changing data formats, resulting in inconsistencies that require human intervention.
The current state of data reconciliation
Financial services organisations are at breaking point with their current legacy systems and manual processes.
Manual processes and legacy systems are not only costing organisations a lot of money and man hours, but they are also causing problems with transparency, which can also have costly affects in the form of regulatory fines.
Financial firms are at this breaking point because many organisations are finding that the amount and complexity of data they now handle as a business is unmanageable with their current systems and processes. And this complexity is leading to transparency issues, with the lack of a transparent, consolidated view of reconciliations being a major problem.
Concerns about data inconsistency and lineage issues are also at the front of companies minds as they plan for future growth. Without automation, automated data lineage is not possible, meaning that instead of a holistic view of the data presented in a structured way, financial services firms are dealing with unstructured data silos with teams and individuals unable to see how upstream data feeds affect them and what downstream business processes rely on their data.
In fact, in a study conducted by Duco surveying 300 heads of global reconciliation utilities, chief operating officers, heads of financial control and heads of finance transformation working in large financial services organisations nearly half (42%) of financial services firms said they are currently struggling with poor data quality and data integrity within their organisations.
Why change is difficult
While agility and fraud are big drivers of the move towards automation and away from legacy systems, often the biggest business case for change is simply cost control. When businesses assess the cost of ownership of technology from data normalisation, data prep and infrastructure to hosting, running and upgrades, the opportunity for technology rationalisation becomes clear.
However, despite there being a compelling argument for changing the status quo, businesses are still finding it difficult to shake things up.
According to our survey, 44% believe that reconciliation without manual processes would be too challenging due to the different types and sources of data they are dealing with. A further 42% believe that the risk of disrupting their business to improve data reconciliation is not worth the benefits of data automation.
But, while there is still some nervousness around the perceived disruption that a move to automation and machine learning will involve, the appetite to become more automated is strongly evident amongst financial services organisations.
Moving towards intelligent data automation
The pandemic, however, has provided the much-needed impetus for change, at a time when conveniently, intelligent data automation (IDA) has become commercially viable.
IDA is a data management strategy that uses no-code, cloud-based technology to automate and control all financial, operational and commercial data across an organisation helping firms to cut costs significantly while reducing risk and improving compliance.
With its use of fully customisable, low-cost solutions that can sit alongside or on top of legacy systems, an IDA approach is key to not only successfully managing data, but to unlocking the full benefits of that data for the business.
By employing an over-arching, self-optimised level of automation, an IDA approach enables businesses to get a detailed view of data across the entire enterprise. With this level of insight, financial services organisations can better understand the performance of their operations, uncover and address weaknesses and identify new opportunities, all of which drives greater efficiency and agility across the organisation and improves regulation reporting accuracy.
With internal and external factors pressurising firms to change, financial services organisations are beginning to look towards IDA as a tool to secure their prosperity in the long term.
Encouragingly, almost half (49%) of financial services firms surveyed say that intelligent data automation is the future, and organisations will need to embrace it to survive. Furthermore, 42% say they will investigate the use of more machine learning in 2021 for the purposes of intelligent data automation.
Covid-19 has accelerated the adoption of machine learning and data automation. We can expect this momentum to continue, driven by the benefits to the business and the end user which make IDA a game-changer for financial services compliance, risk management and in reducing costs.
Original post:
- Automation Personnel Services - Temporary Staffing ... [Last Updated On: March 25th, 2016] [Originally Added On: March 25th, 2016]
- Automation | Define Automation at Dictionary.com [Last Updated On: March 25th, 2016] [Originally Added On: March 25th, 2016]
- Automation | Definition of automation by Merriam-Webster [Last Updated On: March 25th, 2016] [Originally Added On: March 25th, 2016]
- Automation | The Car Company Tycoon Game [Last Updated On: March 25th, 2016] [Originally Added On: March 25th, 2016]
- Automation - Wikipedia, the free encyclopedia [Last Updated On: March 25th, 2016] [Originally Added On: March 25th, 2016]
- Automation - Cloud process & workflow automation | Microsoft ... [Last Updated On: June 29th, 2016] [Originally Added On: June 29th, 2016]
- Riverside Automation - Machine Controls [Last Updated On: July 3rd, 2016] [Originally Added On: July 3rd, 2016]
- Automation: The Car Company Tycoon Game Windows - Mod DB [Last Updated On: July 3rd, 2016] [Originally Added On: July 3rd, 2016]
- System Integration | Industrial Automation [Last Updated On: July 3rd, 2016] [Originally Added On: July 3rd, 2016]
- WinAutomation - Smart Macro Recorder, Web Automation ... [Last Updated On: July 3rd, 2016] [Originally Added On: July 3rd, 2016]
- Automation Solutions - Home [Last Updated On: July 3rd, 2016] [Originally Added On: July 3rd, 2016]
- The Automation Conference [Last Updated On: July 3rd, 2016] [Originally Added On: July 3rd, 2016]
- Rohtek Automation [Last Updated On: July 3rd, 2016] [Originally Added On: July 3rd, 2016]
- JL Automation, LLC | Home Automation, A/V Automation [Last Updated On: July 3rd, 2016] [Originally Added On: July 3rd, 2016]
- Four fundamentals of workplace automation | McKinsey & Company [Last Updated On: August 27th, 2016] [Originally Added On: August 27th, 2016]
- Leviton Security & Home Automation [Last Updated On: August 27th, 2016] [Originally Added On: August 27th, 2016]
- EVA Automation [Last Updated On: September 6th, 2016] [Originally Added On: September 6th, 2016]
- News | Automation | The Car Company Tycoon Game [Last Updated On: September 6th, 2016] [Originally Added On: September 6th, 2016]
- Automation - The Car Company Tycoon Game on Steam [Last Updated On: September 6th, 2016] [Originally Added On: September 6th, 2016]
- Test automation - Wikipedia, the free encyclopedia [Last Updated On: September 6th, 2016] [Originally Added On: September 6th, 2016]
- Job Seekers - Automation Personnel Services [Last Updated On: October 8th, 2016] [Originally Added On: October 8th, 2016]
- Custom Automation & Machine Design | Automation GT [Last Updated On: October 31st, 2016] [Originally Added On: October 31st, 2016]
- iAutomation [Last Updated On: October 31st, 2016] [Originally Added On: October 31st, 2016]
- Test automation - Wikipedia [Last Updated On: November 16th, 2016] [Originally Added On: November 16th, 2016]
- Automation - Official Site [Last Updated On: November 19th, 2016] [Originally Added On: November 19th, 2016]
- Beckhoff Automation - Wikipedia [Last Updated On: November 21st, 2016] [Originally Added On: November 21st, 2016]
- Automation - Security Hyperstore [Last Updated On: November 21st, 2016] [Originally Added On: November 21st, 2016]
- IT Automation - BMC [Last Updated On: November 29th, 2016] [Originally Added On: November 29th, 2016]
- ID Automation [Last Updated On: November 29th, 2016] [Originally Added On: November 29th, 2016]
- The Best Home Automation Systems of 2016 | Top Ten Reviews [Last Updated On: December 24th, 2016] [Originally Added On: December 24th, 2016]
- What is Home Automation? | Home Automation Systems [Last Updated On: December 24th, 2016] [Originally Added On: December 24th, 2016]
- Beyond Automation - hbr.org [Last Updated On: December 25th, 2016] [Originally Added On: December 25th, 2016]
- Build automation - Wikipedia [Last Updated On: December 26th, 2016] [Originally Added On: December 26th, 2016]
- Home automation - Wikipedia [Last Updated On: January 10th, 2017] [Originally Added On: January 10th, 2017]
- Automation | Food Engineering [Last Updated On: January 13th, 2017] [Originally Added On: January 13th, 2017]
- Home Automation - Enerwave Home Automation [Last Updated On: January 14th, 2017] [Originally Added On: January 14th, 2017]
- Automation - DESHAZO [Last Updated On: January 14th, 2017] [Originally Added On: January 14th, 2017]
- Robots, Automation, EOAT, Grippers, Conveyors, Guarding [Last Updated On: January 26th, 2017] [Originally Added On: January 26th, 2017]
- Werner Electric | Automation [Last Updated On: January 28th, 2017] [Originally Added On: January 28th, 2017]
- Automationtechies | Automation Engineering Recruiting [Last Updated On: January 28th, 2017] [Originally Added On: January 28th, 2017]
- Automation - Mazak Corporation [Last Updated On: January 28th, 2017] [Originally Added On: January 28th, 2017]
- Automation | Technologies | Systems | Integrator ... [Last Updated On: January 28th, 2017] [Originally Added On: January 28th, 2017]
- Test Automation Services for Development of Regression ... [Last Updated On: January 28th, 2017] [Originally Added On: January 28th, 2017]
- Carlo Gavazzi Automation Components [Last Updated On: January 30th, 2017] [Originally Added On: January 30th, 2017]
- UI Automation Overview - msdn.microsoft.com [Last Updated On: February 5th, 2017] [Originally Added On: February 5th, 2017]
- New telecom transformation goals require service automation - TechTarget [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Global Hazardous Waste Handling Automation Market: By Products ... - Business Wire (press release) [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- 2M Automation wins IoT support from Schneider - Electronics EETimes (registration) [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Futures Shaped by Automation and Catastrophe: Peter Frase on Capitalism's Endgame - Truth-Out [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Automation expected to displace insurance underwriters, real estate brokers - CIO Dive [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Automation, robots could replace 250000 public sector workers in the next 15 years - Computer Business Review [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Design Automation Conference - Business Wire (press release) [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- The Perks Of Automation And The Risks: Why To Think Twice About Getting Into That Driverless Uber - Forbes [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Lib Dems Should Embrace Automation of the Workforce - Liberal Democrat Voice [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Voices Reinventing enterprise finance by overhauling AP automation - Accounting Today [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- How Accountants Can Use Automation Their Advantage - Accountingweb.com (blog) [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- DFLabs Launches the First Security Automation and Orchestration Platform based Upon Supervised Active Intelligence - Business Wire (press release) [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- QAD Automation Solutions is Honda Approved - Yahoo Finance [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- VIDEO: Going Big on Automation in a Small Footprint Facility - ENGINEERING.com [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Building a better model of human-automation interaction - Phys.Org [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- AlixPartners examines automation in manufacturing and logistics management - Logistics Management [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Report: Test automation is increasing - SD Times - SDTimes.com [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Automation is the unavoidable future of the economy - The Daily Cougar [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- GM's Cruise Automation Is Testing An App to Order Self-Driving ... - Fortune [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Speeders beware: Legislation would allow automation crackdown ... - SFGate [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Orbita Ingenieria: New Age Terminal Automation - Port Technology International [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- A Sharper Focus on the Edge - Automation World [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Rockwell Automation Surged 10% in January as Growth Picked Up Steam - Motley Fool [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Most people are optimistic about workplace automation, social data suggests - ZDNet [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Improving Behavior Through Automation of Vehicle Systems - School Transportation News (blog) [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- 'We employ insane levels of automation' Kris Canekeratne - Times of India [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Why Don't We See More Automation in Federal Networks? - Nextgov [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Technobabble: Automation and the modern worker - CIO Dive [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Readers Write (Feb. 12): The moose population; jobs, start-ups and automation; diversity in the funny pages - Minneapolis Star Tribune [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- Automation Nightmare: Philosopher Warns We Are Creating a World Without Consciousness - Big Think [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- Automation can replace bureaucrats and save taxpayers money - Hot Air [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- Automation can revitalize the US workforce - Fox News [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- TigerStop hopes to ride automation to new heights - The Columbian [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Hexadite Unveils Custom Playbooks Following One Millionth Automated Cybersecurity Investigation - Yahoo Finance [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- NEC updates postal automation system for Hongkong Post - ETCIO.com [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]