With GDPR being the most complex regulation, Chief Data Officers are planning to turn to data management and machine learning technology, according to a new survey.
Gresham Technologies has released the WBR Insights Regulation, Innovation, and Digitalisation survey, which surveyed 100 Chief Data Officers across Europe.
The aim of the survey was to find out the challenges they are facing as the financial sector grapples with a data revolution and increasingly complex regulatory environments.
When asked what piece of regulation is creating the most complexity for them, 69% said GDPR was causing the most problems, with MiFID II coming second at 18%. FRTB came third with 7%, Solvency II came fourth with 3%, and BCBS239 and CCAR scored 2% and 1%, respectively.
The respondents said that GDPR is complex because the regulation is not outlining the exact process that a company should follow and the sections mentioned are blurry in terms of defining the exact scope.
Another compliant was that with Blockchain being an integral part of the financial sector now, the GDPR regulation falls completely opposite to the design of blockchain since data blocks cannot be erased from the process. Other reasons cited were the cost of compliance, GDPR and PSD2 being contradicting regulations, and the scope of penalties not being clearly defined, among others.
The chief data officers were asked how they plan to modernise their strategy to keep pace with regulatory change. The survey found that 36% plan to deploy new data management technology that takes the burden off the analysts, while 33% said they are looking to drive new levels of stewardship to ensure correct data usage is prioritised.
More than half (52%) of financial CDOs surveyed are unaware of all data gaps in their organisation, while 36% of respondents feel their data governance strategy is inadequate.
When asked about which technologies they plan to invest in over the next 24 months to automate data tasks, data management and machine learning came out on top, with over 80% setting some of the budget aside for them in the coming two years.
Two thirds of the CDOs said developing relationships with FinTechs is either crucial or a top priority to drive innovation.
“With more than 9 out of 10 firms seeing relationships with fintech firms as a crucial part of their innovation roadmap, we expect to see even greater engagement and partnership across our industry in the coming years,” said Paul White, CMO of Gresham.
“As a leader in enterprise data integrity, Gresham’s aim is to help organisations be confident that they meet stringent regulations and trust their data enough to use it as the kindling of innovation. As such, we are delighted to support FIMA and the information management community with this thought-provoking survey.”
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
