Is data the new oil? - Peter Golder
One of the big themes to come out of Sibos this past autumn was the importance of data – which many are calling “the new oil” – in financial services today.
It’s true, data is being generated in more plentiful supply than ever before. Many factors are driving this gush of data including regulatory requirements calling for greater transparency and accountability, an increase in the number of data elements that can be captured per transaction, and unprecedented technological innovation leading to more service and process digitisation.
Not only is more data being generated, but our ability to capture, manipulate and analyse it is increasing exponentially too.
The question is: what can we do with all this data?
There is real opportunity today to re-think the way we use data, not only for increasing efficiency and reducing costs, but also to gain insights that add business value: from aiding decision making, risk management and compliance, to introducing new ways of adding value to customers.
All this was clear from the discussion I participated in at Sibos 2017 – From data disorder to information insights – in which our expert panel highlighted the new opportunities to put data (and new technologies) to use in overcoming longstanding obstacles, reducing data management costs and delivering new value.
In the back office, for example, there are significant benefits to be gained – from both an operating risk and cost perspective – in using more timely and granular data flows to improve operational processes.
The opportunities are arguably even greater for the front office where, for example, trading can be boosted through improved aggregation and analysis of recent and historical pricing and transaction data.
Whether it’s for increasing transparency on liquidity matters, improving risk management and compliance, or in any other area, there is clearly a role for insights derived from data to support business evolution.
So how can data be leveraged more effectively?
I think the first step is to assess the data you have internally to identify ways in which it can be generated, utilised and shared better. Only once such an internal assessment has taken place can you look to develop new business cases focusing on the areas where further investment will yield the greatest rewards.
But if data is the new oil, innovations from cloud computing to artificial intelligence to blockchain will only provide the means of extraction and refinement.
It will be the discussions between technology experts, operations staff and business heads – and their service providers – that will point the way to the most ground-breaking and value-added business opportunities.
As a service provider and market infrastructure operator, Euroclear is looking at how we can use the data we and our clients generate in order to improve the quality of existing services.
We’re also alert to opportunities to aggregate and package information in new ways to meet evolving needs – from improving settlement rates to enhancing liquidity to supporting greater collateral mobilisation.
It’s an exciting time and I’m pleased to report our new Euroclear Information Solutions business is gearing up to offer the data-driven insights our customers need to fuel their business.
Peter has more than 25 years of experience in the global financial services industry with a focus on capital markets. As the CEO of Euroclear Information Solutions (EIS), he drives the data and information business of the Euroclear Group. EIS aims to increase efficiencies, transparency and promote liquidity in global fixed income markets.