Nearly a third of the data governance programmes run by businesses in the finance sector are failing to add value; according to a new market research study on data governance by Nephos Technologies.
In addition to this, the data services integrator also found how a mere 24 per cent are only just getting started with their data governance programme, while nearly two-thirds state they don’t have the skills or expertise to properly utilise the tools they have bought.
The survey, conducted in January 2022, gathered insights from 300 CIOs, 300 CISOs and 300 DPOs (or equivalent), including those in finance sector organisations.
Its study revealed those with responsibility for governance understand the positive business impact that results from good data governance initiatives, but many admit to facing significant challenges when it comes to the successful implementation of their strategies.
The 900 survey respondents are at varying stages of their data governance programme rollout.
In the finance sector, half had bought some tools but were unsure how to drive business value and outputs from those tools; 26 per cent have invested in tools but admit to having unoptimised gaps in their approach to data governance and 11 per cent know they need to act on data governance but simply don’t know how.
Thirteen per cent admit they have a strategy, but struggle with in-house expertise.
The survey drilled down into the obstacles organisations face. Key challenges include difficulty justifying the business case (39 per cent); a lack of expertise (33 per cent); executive support (33 per cent); cost (28 per cent) and effective tools (26 per cent).
However, regardless of their status when it came to their data governance programme rollout, respondents were clear about the positive business impacts they were hoping to achieve including improved data quality (39 per cent); minimising financial risk (39 per cent); driving efficiencies and reducing costs (39 per cent); and a higher quality of data analytics and insights (33 per cent).
Other positive impacts sought included: compliance with regulatory requirements (26 per cent); better data privacy/security (26 per cent) and fast access to relevant data (24 per cent).
“There is no doubt that organisations in the finance sector are struggling to derive maximum value from their data governance programmes,” comments Michael Queenan, founder and CEO of Nephos Technologies.
“When these initiatives struggle to meet their objectives, the missing link is often access to relevant experience alongside proven, integrated tools that can support complex strategies, not inhibit them.
“Done well, data governance allows organisations to focus on the transformational potential of data whilst supporting business growth and compliance.”