Reference Data Management Trends and Vendor Overview

Description

In a rapidly growing global economy, financial companies have taken to the M&A way of growing. However, this has saddled companies with unstructured data pertaining to stakeholders, products and services. Without a bridge between disparate data, organizations are left to fend with chunks of information silos. Add to it the challenges posed by compliance regulations like Sarbanes-Oxley, Basel II, anti-money laundering and more recently, MiFID. The need to manage reference data better is a pressing need for financial services companies.

FSO Knowledge Xchange (FSOkx) took up this study to understand the challenges faced in managing reference data. In the second phase of the study, the FSO research team conducted extensive research to identify the leading vendors in this domain. Vendors were assessed based on two main parameters market reach and growth potential. Based on these parameters, vendors were given a composite score.

This report will serve as a reference point for financial services companies looking to outsource their reference data management activities.

Who can benefit

• Financial services companies looking to identify the right vendor to serve their reference data management requirements.
   
• Industry observers trying to track the competitive landscape in the reference data management sector.
   
• Service providers working towards improving their service offerings based on the problems faced by financial services companies.

 Key Findings

• The growing acceptance of mergers and acquisitions as a growth strategy has made outsourcing critical to the reference data management industry.
   

•  Inaccurate and inadequate data and a weak data management framework are key contributors to the failure of many a trade in the financial services sector.
   

•  The global reference data management market is expected to grow at a compound annual growth rate (CAGR) of nearly 58 percent over the next five years.
   

•  By 2011, FS Outsourcing estimates the reference data software market to reach USD 3.9 BN while the reference data services market is estimated to grow to USD 7.5 BN. 
   

• No single service provider has a dominating position in the reference data management outsourcing market.
  

• The vendor rankings are dominated by large and established IT companies accompanied by a coterie of niche players.