15 min
Platform Lock-In May Be Driving Up Data Costs The FTF Exchange Podcast
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- News
The cost of data is exploding for securities firms and that may be due to inflation and firms being locked into a data platform that sometimes comes from the same data provider, says Roy Kirby, head of core products at SIX, in the latest edition of the FTF Exchange podcast from FTF and FTF News.
“I would say that now we’re back in an inflationary environment. I think that some larger companies are … locked into software platforms that are also provided by data providers. And some of those data providers are maybe taking advantage of the inflationary environment to pass on some very large yearly increases to the end customer,” Kirby says.
“That’s one thing. I think the second thing is the regulatory landscape that we live in the financial world is still very fragmented. The regulations are asking for very similar in slightly different ways and sometimes overcomplicating and overlapping data points are needed,” he says.
Another part of the problem is that financial institutions often use a project-based approach to meet regulatory requirements, which increases their cost-base from year to year, Kirby says.
To counter rising data cost, firms can streamline their data management costs and find opportunities to maximize their data budgets.
“I think one thing they can continue to do is to investigate internally and look across projects for common standards and common data linkages,” Kirby says. Firms can see “how they can link them together rather than run them as separate siloed projects.”
For example, when firms are gathering ESG and cryptocurrency data, the related fund data could be taken in once and used many ways, Kirby says.
“The other way is a very traditional way to cut costs and that’s to really look at your data management platforms,” he says. “Look at them and think how you can maybe split your data management platform from your data provider because if you lock yourself in too much the data provider might increase their costs over time.”
The podcast also covers:
How firms can use data visualization to better understand and control their data usage;
Why data visualization appeals to younger staff members; and
How to transform an operations effort from data-heavy cost center into a revenue opportunity.
SIX is a provider of financial data and services for the financial services industry. The company offers core reference data about securities, prices, corporate events, tax and regulatory data. It is also known for its flagship indices and bespoke benchmarks.
Earlier this year, SIX won the Best Data Provider award in the FTF News Technology Innovation Awards. The Best Data Provider award honors the company that offers the most comprehensive global coverage in a timely manner and with a user-friendly, consolidated view. The winner in that category was seen by the voters to have a complete offering that lowers operational risks for clients.
The cost of data is exploding for securities firms and that may be due to inflation and firms being locked into a data platform that sometimes comes from the same data provider, says Roy Kirby, head of core products at SIX, in the latest edition of the FTF Exchange podcast from FTF and FTF News.
“I would say that now we’re back in an inflationary environment. I think that some larger companies are … locked into software platforms that are also provided by data providers. And some of those data providers are maybe taking advantage of the inflationary environment to pass on some very large yearly increases to the end customer,” Kirby says.
“That’s one thing. I think the second thing is the regulatory landscape that we live in the financial world is still very fragmented. The regulations are asking for very similar in slightly different ways and sometimes overcomplicating and overlapping data points are needed,” he says.
Another part of the problem is that financial institutions often use a project-based approach to meet regulatory requirements, which increases their cost-base from year to year, Kirby says.
To counter rising data cost, firms can streamline their data management costs and find opportunities to maximize their data budgets.
“I think one thing they can continue to do is to investigate internally and look across projects for common standards and common data linkages,” Kirby says. Firms can see “how they can link them together rather than run them as separate siloed projects.”
For example, when firms are gathering ESG and cryptocurrency data, the related fund data could be taken in once and used many ways, Kirby says.
“The other way is a very traditional way to cut costs and that’s to really look at your data management platforms,” he says. “Look at them and think how you can maybe split your data management platform from your data provider because if you lock yourself in too much the data provider might increase their costs over time.”
The podcast also covers:
How firms can use data visualization to better understand and control their data usage;
Why data visualization appeals to younger staff members; and
How to transform an operations effort from data-heavy cost center into a revenue opportunity.
SIX is a provider of financial data and services for the financial services industry. The company offers core reference data about securities, prices, corporate events, tax and regulatory data. It is also known for its flagship indices and bespoke benchmarks.
Earlier this year, SIX won the Best Data Provider award in the FTF News Technology Innovation Awards. The Best Data Provider award honors the company that offers the most comprehensive global coverage in a timely manner and with a user-friendly, consolidated view. The winner in that category was seen by the voters to have a complete offering that lowers operational risks for clients.
15 min