As many as three quarters of corporate, trust and fund services firms do not trust their own data, suggests recently published research.
Data quality has become a pressing concern for firms, according to the Future Focus Report produced by corporate services software companyTrustQuay and Viewpoint.
More than three-quartewrs (77%) of surveyed firms named it as their top priority for 2024, up from 44% just three years ago. And when asked to rate the quality of their data, the average score was just 6 out of 10.
The problems with data quality are exacerbated by the persistent prevalence of manual processes. Almost half (41%) of firms are still relying on spreadsheets to manage client information, while a similar number believe that the industry does not invest as much in technology as other sectors of financial services.
The survey found that only 41% of firms ahve implemented a "consistent operating model to improve data quality" while 93% have not fully automated data inputs, data checks and key workflow processes.
More optmistically, the survey did also reveal that half of respondents believe AI will have an increasingly positive impact on firms’ data quality.
“Having trust in your data and the confidence it is accurate, reliable and accessible data is fundamental to a firm’s ability to deliver their services to clients,” said Paul White, chief marketing officer at TrustQuay.
“But it's more than just this – firms are now recognising that improving data quality is the gateway for being able to digitalise business models and therefore dramatically improve efficiencies, reduce costs and lessen the regulatory burden.”
The report surveyed 90 wealth managers, family offices and corporate, trust and funds services providers between June and September 2023.