Some welcome good news for financial institutions came out in April’s “Building a Data Management Foundaton” webcast. Most respondents (80%) felt that their current data management systems are in good shape for future regulatory requirements. These regulatory requirements include Legal Entity Identifier (LEI) adoption, where a plurality have either made necessary changes or have a plan to do so.
More good news are the anticipated benefits from LEI – with over 86% of the audience convinced that LEI will be a positive change within 5 years of adoption.
In March 2012, Ira Hammerman, Senior Managing Director and General Counsel of SIFMA outlined the key benefits the industry expects to see, which include more efficient data aggregation, and this improved risk modeling and management. That Mr Hammerman put data aggregation improvements at the top of his list shows that the even the senior management in the industry recognises that data management needs improvement.
I’ll be monitoring the rollout of LEI with our customers to see if the promised value appears, and the timescale of both adoption and value generation. Interesting times.