By Rob Starr, Big4.com Content Manager
Big Data is one of those game changing juggernauts that demands the attention of all industry as it rolls across the business landscape transforming all the familiar landmarks in its path. All across the business horizon, the C-suite is facing this implacable force and the ever increasing number of technological advancements that ride side-saddle and nowhere is this more evident than in the financial industry.
Growing regulatory pressure and new market opportunities are driving the need for robust data management in the sector and Capgemini consulting and Efma have identified some of the hotpoints for the industry. Zhiwei Jiang, Global Head of Insights & Data Capgemini Financial Services, spoke with Big4.com recently about the new ‘Stewarding Data: Why Financial Services Firms Need a Chief Data Officer’ report that outlines the need for these executives, how only 16% of financial services firms have appointed CDOs and how many of those are still focusing on compliance at the expense of data analytics.
CDO in place
“More than 30% of companies haven’t put a CDO in place yet,” said Jiang who has deep domain expertise in Big Data, data integration, data quality, risk, trading, connectivity and finance. “There are three or four different reasons for this.”
He cites the banking industry where the never ending wave of regulatory cost pressure quite often pushes the CDO cause to the background as one example.
“In general there’s also a lack of data leadership at the senior level and awareness of the corresponding innovation and technology,” he says noting that many in the upper echelons of the financial industry don’t come from a tech background and don’t necessarily have a good understanding of what needs to be done and why.
“In some cases, even the simple answers like who a CDO should report to are very unclear.”
Understandably, the real fulcrum is showing how this prospective member of the C-suite will
drive business value by creating cost savings, driving revenue and helping with regulatory compliance. Jiang, who has extensive management and execution experience spanning multiple continents including Europe, America, and Asia sees more success with this new trend at certain levels in the financial industry.
“I tend to see smaller banks and franchises have a bigger success rate,” he says.
The teams that work with the CDO have some requirements that need be addressed for the overall success of any project. They need platforms that include aspects like data ingestions and sourcing, warehousing and analytics tools that feed the business value. Jiang concludes by pointing to the rising tide of applications on the way that will surely change the nature of the CDO’s job description yet again.
“I still think that everyone is trying to find the killer ap that will define big data management experience, but I think we’re still in the early stage,” he says.