Recent research indicates that as many as three-quarters of corporate, trust, and fund services firms lack confidence in their own data.
According to the Future Focus Report by corporate services software company TrustQuay and Viewpoint, data quality has emerged as a significant concern for firms. In fact, over three-quarters (77%) of those surveyed identified it as their top priority for 2024, a marked increase from just 44% three years prior. When rating the quality of their data, the average score was only 6 out of 10.
The challenges surrounding data quality are intensified by ongoing reliance on manual processes. Nearly half (41%) of firms continue to use spreadsheets for managing client information, and a similar proportion believes that the financial services industry is falling behind in technology investments compared to other sectors.
The survey revealed that only 41% of firms have adopted a "consistent operating model to improve data quality," while 93% have yet to fully automate data inputs, checks, and key workflow processes.
On a more positive note, half of the respondents expressed optimism that artificial intelligence (AI) will enhance data quality within their firms.
Paul White, Chief Marketing Officer at TrustQuay, emphasized the importance of trust in data, stating, “Having accurate, reliable, and accessible data is fundamental to a firm’s ability to deliver services to clients. Moreover, improving data quality is crucial for digitalizing business models, which can lead to significant improvements in efficiency, cost reduction, and a decrease in regulatory burdens.”
The report surveyed 90 wealth managers, family offices, and corporate, trust, and fund service providers from June to September 2023.