Platforms are highly dependent on the quality of their systems and data, as industry volumes mean it is impossible to monitor and manage data accuracy manually. Often platforms will allow underlying clients to input data that needs to be monitored directly into their system.
Poor data can create problems in multiple areas:
misleading, inaccurate or out of date policy/plan data being reported
Dealing errorsfrom incorrect security set-up by third parties
Inappropriate investmentsdue to an incorrect model linked to the wrong portfolio
such as mis-calculated fees being charged or erroneous regulatory submissions
used for critical and strategic decision making
The consequences of bad data can be significant:
- Damaged client relationships caused by inaccurate communications
- Lost reputation if the above happens at any scale
- Increased staff costs to monitor and resolve data-related issues
- Reduced productivity from continuously allocating valuable resource to address data problems
- Regulatory fines if customer data is misrepresented or regulatory reporting is inaccurate.
- Strategic decisions based on poor data can be damaging to both clients and the firm
- Cost of compliance will grow if data issues are ignored
Platforms need to keep a keen eye on how data is acquired, processed and reported to ensure they can run an efficient operation, avoid falling foul of the regulator and maintain customer trust, especially given the widespread use of ageing systems in the industry.
To find out how to avoid these pitfalls
Insights for Platforms
The hidden cost of bad data
Pain points from bad data