Financial institutions inefficient in handling data

Financial institutions inefficient in handling data

Sector needs to step up the way it handles sensitive information, according to research

Data distribution is fraught with inefficiencies across the financial services sector, exposing companies and customers to financial, regulatory and commercial risk, according to a study.

Blockchain platform vendor BC Gateways found that 53 percent of data for underlying funds in Australia still comes through email. Meanwhile, 77 per cent of respondents o the study indicated that unlisted unit data cannot be sourced from a single provider, 70 per cent claimed the data was not always completely accurate, and 64 per cent said data received often fails to meet time requirements.

The sector as actively working towards solving issues around data distribution to reduce risk and build processes that really improve consumer outcomes, said Gordon Little, managing director at BC Gateway.

He said the local financial sector can use blockchain platforms to 'leapfrog' other countries and position itself as a leader in the use of innovative technologies.

“Financial services has a revolutionary new way to publish and distribute data that will underpin the rapidly increasing industry need for accurate, timely and auditable data delivered in a cost-effective way,” said Little.

BC Gateways’ blockchain-enabled data platform is a shared source of truth utility that reduces the cost and regulatory burden driven by imperfect data communication and associated risks.

The Gateway was specifically designed to allow volumes of structured and unstructured data to be securely shared between participants on a permission only basis. Little said this was different from other blockchain infrastructure initiatives that focus on financial transactions.

In 2018, BC Gateway launched a pilot for fund managers, custodian banks, administrators and technology providers, including Aberdeen Standard Investments, IRESS, Perpetual, and Equity Trustees.

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Tags Data managementregulatoryFinancial ServicesSecurity and PrivacyBlockchain

More about AustraliaEquity TrusteesGatewayIRESSPerpetual

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