DATA GOVERNANCE LACKS BOARD-LEVEL SUPPORT
Financial institutions risk improperly managed data as 63% of industry executives say they do not consider data governance a board level issue
Research by QlikTech (NASDAQ: QLIK), a leader in user-driven Business Intelligence (BI), has found that, while data governance has become more important following the global financial crisis, over two thirds (63%) of financial industry executives do not consider it to be a Board-level issue. The study, conducted for QlikTech by Lepus, shows that one third (31%) of financial institutions do not have defined roles and responsibilities in the data governance space despite the many business drivers for data governance in the financial industry.
Combined with an unprecedented rise in the volumes of data being processed on a daily basis, a multitude of regulations relating to data management have been introduced, including Sarbanes-Oxley, SEC-17a, Basel III, Solvency II and BCBS 239 (Risk Data Aggregation). Financial institutions have had to establish standard practices with respect to data architecture and modelling for which data governance is a solution.
The research, which surveyed banks in Europe, North America and Asia-Pacific to explore data governance initiatives, highlights the need for Board-level representation and ownership to ensure that data governance frameworks meet the business objectives.
This is all the more important given that the survey also reveals multiple business drivers for data governance initiatives and different primary functions of a data governance framework. Achieving regulatory compliance and reducing regulatory risk was recognised by 94% of banking executives as a business driver, followed closely by ensuring data consistency across the enterprise (88%) and improving transparency of financial data and information (63%).
However, the primary function of a data governance framework varies markedly among the banks surveyed. While 44% of survey respondents placed reducing risk as a primary function and delivering business benefit as another, meeting regulations was only classed a primary function of a data governance framework by 13%.
“Given the many business drivers and responsibilities of a data governance function our research demonstrates, it’s especially important for data governance to have Board-level representation and ownership so it is managed, measured and implemented to meet the business’ agenda effectively,” says Duncan Ash, Director, FS Market Development, EMEA, at QlikTech. “Data governance has become more important following the global financial crisis as financial institutions have been forced to conduct comprehensive reviews of their data management strategies, but without the senior level representation and agreed objectives, it’s unlikely to have the desired effect or outcome on a bank.”
“Not only can data governance frameworks help financial institutions achieve regulatory compliance to reduce risk, it can also ensure purging of bad data. For banks to be profitable, they need accurate data,” Ash continues. “Even if data governance itself lacks Board-level representation, linking profit to data quality will warrant financial institutions taking notice of the need for a data governance framework at the highest level. CFOs need to be able to rely on a number to influence a decision and to have a certain level of confidence in that number – safe in the knowledge they can prove where it came from. With this reassurance they have the confidence to make better decisions and act upon information as soon as it becomes available.”
QlikTech provides user-driven Business Intelligence (BI) – Business Discovery – to companies and organisations globally across all markets and industries. QlikView Expressor helps financial services firms to take control of their data – to understand where it originated from, who has modified it and when, and to understand any formulae which have been applied to the data during its lifecycle. Over 2,500 financial services institutions rely on the QlikView platform, including all of the top 15 banks based in North America and Europe, because it empowers business users and decision-makers and provides access to on demand analysis, insights and business discovery.
To find out more download the report on Data Governance: Streamlining and Enriching Data Across the Organisation: bit.ly/1a713CT.
 2011 “Forbes 2000” list
QlikTech (NASDAQ: QLIK) reveals meaning in data so people can act on it. The QlikView Business Discovery software platform and Qlik Customer Success Framework provide the people, technology and services to help organizations progressively optimize how they use data as a strategic resource. QlikView uses Natural Analytics™ to support the way our human curiosity naturally searches and processes information, revealing insights and enabling decisions in the process. From small businesses to the largest global enterprises, QlikView gives users the immediate insights they need and IT professionals the enterprise manageability and governance they require. Headquartered in Radnor, Pennsylvania, QlikTech has offices around the world serving approximately 30,000 customers in over 100 countries.
Sunak to use budget to expand apprenticeships in England
LONDON (Reuters) – British finance minister Rishi Sunak will announce more funding for apprenticeships in England when he unveils his budget next week, the government said on Friday.
Employers taking part in the Apprenticeship Initiative Scheme will from April 1 receive 3,000 pounds ($4,179) for each apprentice hired, regardless of age – an increase on current grants of between 1,500 and 2,000 pounds depending on age.
The scheme will extended by six months until the end of September, the finance ministry said.
Sunak will also announce an extra 126 million pounds for traineeships for up to 43,000 placements.
Sunak’s March 3 budget will likely include a new round of spending to prop up the economy during what he hopes will be the last phase of lockdown, but he will also probably signal tax rises ahead to plug the huge hole in the public finances.
Sunak is also expected to announce a “flexi-job” apprenticeship scheme, whereby apprentices can join an agency and work for multiple employers in one sector, the finance ministry said.
“We know there’s more to do and it’s vital this continues throughout the next stage of our recovery, which is why I’m boosting support for these programmes, helping jobseekers and employers alike,” Sunak said in a statement.
(Reporting by Andy Bruce, editing by David Milliken)
UK seeks G7 consensus on digital competition after Facebook blackout
LONDON (Reuters) – Britain is seeking to build a consensus among G7 nations on how to stop large technology companies exploiting their dominance, warning that there can be no repeat of Facebook’s one-week media blackout in Australia.
Facebook’s row with the Australian government over payment for local news, although now resolved, has increased international focus on the power wielded by tech corporations.
“We will hold these companies to account and bridge the gap between what they say they do and what happens in practice,” Britain’s digital minister Oliver Dowden said on Friday.
“We will prevent these firms from exploiting their dominance to the detriment of people and the businesses that rely on them.”
Dowden said recent events had strengthened his view that digital markets did not currently function properly.
He spoke after a meeting with Facebook’s Vice-President for Global Affairs, Nick Clegg, a former British deputy prime minister.
“I put these concerns to Facebook and set out our interest in levelling the playing field to enable proper commercial relationships to be formed. We must avoid such nuclear options being taken again,” Dowden said in a statement.
Facebook said in a statement that the call had been constructive, and that it had already struck commercial deals with most major publishers in Britain.
“Nick strongly agreed with the Secretary of Stateâ€™s (Dowden’s) assertion that the governmentâ€™s general preference is for companies to enter freely into proper commercial relationships with each other,” a Facebook spokesman said.
Britain will host a meeting of G7 leaders in June.
It is seeking to build consensus there for coordinated action toward “promoting competitive, innovative digital markets while protecting the free speech and journalism that underpin our democracy and precious liberties,” Dowden said.
The G7 comprises the United States, Japan, Britain, Germany, France, Italy and Canada, but Australia has also been invited.
Britain is working on a new competition regime aimed at giving consumers more control over their data, and introducing legislation that could regulate social media platforms to prevent the spread of illegal or extremist content and bullying.
(Reporting by William James; Editing by Gareth Jones and John Stonestreet)
Britain to offer fast-track visas to bolster fintechs after Brexit
By Huw Jones
LONDON (Reuters) – Britain said on Friday it would offer a fast-track visa scheme for jobs at high-growth companies after a government-backed review warned that financial technology firms will struggle with Brexit and tougher competition for global talent.
Finance minister Rishi Sunak said that now Britain has left the European Union, it wants to make sure its immigration system helps businesses attract the best hires.
“This new fast-track scale-up stream will make it easier for fintech firms to recruit innovators and job creators, who will help them grow,” Sunak said in a statement.
Over 40% of fintech staff in Britain come from overseas, and the new visa scheme, open to migrants with job offers at high-growth firms that are scaling up, will start in March 2022.
Brexit cut fintechs’ access to the EU single market and made it far harder to employ staff from the bloc, leaving Britain less attractive for the industry.
The review published on Friday and headed by Ron Kalifa, former CEO of payments fintech Worldpay, set out a “strategy and delivery model” that also includes a new 1 billion pound ($1.39 billion) start-up fund.
“It’s about underpinning financial services and our place in the world, and bringing innovation into mainstream banking,” Kalifa told Reuters.
Britain has a 10% share of the global fintech market, generating 11 billion pounds ($15.6 billion) in revenue.
The review said Brexit, heavy investment in fintech by Australia, Canada and Singapore, and the need to be nimbler as COVID-19 accelerates digitalisation of finance, all mean the sector’s future in Britain is not assured.
It also recommends more flexible listing rules for fintechs to catch up with New York.
“We recognise the need to make the UK attractive a more attractive location for IPOs,” said Britain’s financial services minister John Glen, adding that a separate review on listings rules would be published shortly.
“Those findings, along with Ron’s report today, should provide an excellent evidence base for further reform.”
Britain pioneered “sandboxes” to allow fintechs to test products on real consumers under supervision, and the review says regulators should move to the next stage and set up “scale-boxes” to help fintechs navigate red tape to grow.
“It’s a question of knowing who to call when there’s a problem,” said Kay Swinburne, vice chair of financial services at consultants KPMG and a contributor to the review.
A UK fintech wanting to serve EU clients would have to open a hub in the bloc, an expensive undertaking for a start-up.
“Leaving the EU and access to the single market going away is a big deal, so the UK has to do something significant to make fintechs stay here,” Swinburne said.
The review seeks to join the dots on fintech policy across government departments and regulators, and marshal private sector efforts under a new Centre for Finance, Innovation and Technology (CFIT).
“There is no framework but bits of individual policies, and nowhere does it come together,” said Rachel Kent, a lawyer at Hogan Lovells and contributor to the review.
($1 = 0.7064 pounds)
(Reporting by Huw Jones; editing by Jane Merriman and John Stonestreet)
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